Tory and Chris at it Again
Battle Burch is turning into a brawl. Tory Burch pushed back at her ex-husband Christopher Burch, filing an answer and counterclaims to his Oct. 2 lawsuit. In her court papers filed Monday evening, Burch alleges that her former husband purposely gleaned information about her namesake brand in order to create the “knock-off” retail concept C. Wonder. That claim is a point of contention between the Burches — who each own 28.3 percent of Tory Burch LLC. Chris Burch sued his former wife in Delaware state court, alleging that she kept him from pursuing other business ventures as he tried to sell his stake in Tory Burch, the company the duo created in 2003.
While the back and forth won’t subside anytime soon, the case is on an expedited track. Lawyers for Chris Burch were granted that request when they argued last Thursday before presiding Judge Leo Strine. This will likely bring both sides back to court for a trial in early April. Tory Burch denied those claims in her response and said in court papers that her ex-husband “only has himself to blame” for the fact that a potential sale of his shares fell through. The deal, which was dubbed Project Amethyst, “died” because Chris Burch, a director of Tory Burch, created C. Wonder last year, an act that “violated” his contractual and fiduciary duties, Tory Burch claimed in her court papers.
IAG to Buy HMX
Individualized Apparel Group on Tuesday said it has signed a definitive agreement to purchase substantially all the assets of Coppley Corp., the Canadian custom clothing manufacturer owned by the bankrupt HMX Group. According to court papers, the purchase price was $3.5 million and the agreement is subject to court approval in the U.S. and Canada. The privately held IAG, which owns Oxxford Clothing, H. Freeman, Corbin, Tom James, Gitman, Individualized Shirts and the Holland & Sherry textile business, among others, has built its business on custom apparel production and direct selling. It owns seven factories in the U.S. and another in Chile and boasts that it is the “largest purveyor of luxury men’s apparel still manufacturing in America.” Its volume is estimated at about $300 million, not counting the Tom James retail business.
“Coppley has a tremendous reputation in the marketplace,” said IAG president and chairman Joe Blair. “They have worked diligently to build great loyalty from their customers both in Canada and the U.S. We have admired them for years as a worthy competitor and we are excited to have them join our IAG team of companies.”
Burberry Profits Decline
Guess that doesn’t help that the brand just opened that new store on Michigan Avenue, huh? Burberry Group reported a 27.5 decline in first-half profits to 85 million pounds, or $134.3 million, due to exceptional items including the early termination of its fragrance license with Inter Parfums SA, and despite a 6.4 percent rise in revenue to 882.5 million pounds, or $1.39 billion.
Burberry’s adjusted profits before taxes – not including the exceptional items – climbed 7.3 percent to 173.4 million, or $274 million, and beat analysts’ expectations. Analysts had projected profits before taxes to be about 165 million pounds, or $260.7 million. Burberry’s reported profits before taxes fell 29.5 percent to 111.9 million, or $176.8 million.
Labelux Sells Derek Lam
As part of an effort to focus its energies on high-end accessories, Labelux has sold the Derek Lam brand to its founders Lam and Jan-Hendrik Schlottmann. The terms of the deal have not been disclosed. An announcement is expected later today. Labelux acquired a majority stake in Derek Lam International LLC in July 2008, five years after it was founded. The disposal is the first that Labelux has made since it was set up in 2007 with the mission of becoming a global player in the luxury goods market.
“We have taken a strategic decision to refocus our activity on luxury leather goods and shoes, Reinhard Mieck, Labelux chief executive, said Wednesday.
- Taneisha Jordan
Source & Photo: WWD