Ace's New Deal
LOS ANGELES
— Sherwin "Ace" Ross, former president of One Clothing is set
to make a statement of his own.
Under the Ace
Ross Studios banner, Ross has entered into a joint venture with a
prominent private label manufacturer based here to produce a junior and
tween line, premiering at the New York Fashion Boutique Show, Jan. 6 to 8.
Just two months
have passed since he filed a lawsuit against his former employer, One
Clothing, a division of O&K Inc., alleging breach of contract and
fraud. In the pending suite,
he is seeking more than $20 million in damages.
Ross, who
joined One Clothing as an independent contractor in 1995, was given a
60-day notice of termination by O&K in September, according to Norman
L. Pearl, an attorney representing Ross.
Since the day
he left One, Ross has pursued partners for a new joint venture.
According to
the terms of his new deal, he has a 40 percent stake, the title of
president of sales and marketing and he will design as well.
The private label firm, who Ross declined to identify, holds 60
percent.
"The
future of this business, especially in Los Angeles, is vertical,"
said Ross. "It is the
only way that junior and tween companies can survive at the price points
that stores are looking at."
The new company
is planning to hire two other private label manufacturers--one to produce
T-shirts, the other denim products, Ross said, adding, "My intent is
to brand Ace Ross."
The moderate
junior and tween sportswear lines are expected to be wholesale priced from
$3 to $29.
The retail
debut next summer will incorporate a range of fabrics, including
microfiber Tactel, cotton, denim, rayon jersey, cotton and spandex.
Geometric-printed
tops, stretch poplin boot-cut pants and a denim category are among the
offerings in the first collection.
The mission,
said Ross, is "to offer trendy and affordable basics." Projected first-year volume is $10 million.
About $200,000
is being allotted for a print ad and marketing campaign next year.
"Ace has
been involved in the business for a substantial number of years,"
said Larry Jacobson, a partner in Stonefield Josephson Accountancy Corp.,
which will handle the company's accounting and licensing deals. "Now he is creating a well-capitalized entity."
He noted Ross
is not "rushing into anything" and is building the right
infrastructure to facilitate substantial volume.
Contact: Bob Rooney at Warren Cowan & Associates (310) 553-1055 or
bbrooney@warrencowan.com.
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