Blue (CE) (USOTC:BLHI)
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From May 2019 to May 2024
Blue Holdings, Inc. (OTC: BLHI), a designer, manufacturer and
distributor of high-end fashion jeans, today announced that effective
October 31, 2008, it has entered into a joint venture (JV) agreement,
with Headgear, Inc, a leading fashion designer and manufacturer with
wholesale sales in excess of $100 million. The new entity, Blue Holdings
Headgear JV LLC (BHH), will market, sell and distribute the Taverniti
So, Yanuk, and Antik Denim apparel brands within the United States.
BHH will initially market Blue Holdings’
products to all of the current customers of Blue Holdings and Headgear.
Headgear will also develop non-denim products for distribution by BHH,
such as t-shirts, hoodies and footwear, under the Taverniti So, Yanuk,
and Antik Denim brands. Blue Holdings will continue to source the denim
products for its various brands, and will sell those products to BHH for
distribution to US retailers. The new formed joint venture also has the
right to enter license agreements for merchandise under the
aforementioned brands for sale in the U.S. Any license fees would be
split equally between Blue Holdings and Headgear.
Under the terms of the agreement, BHH will be financed by Headgear Inc.,
with Blue Holdings and Headgear each owning 50% of the newly formed
entity. Headgear will advance Blue Holdings $1.25 million over the
course of four months to be used as working capital. The advance will be
repaid out of Blue Holding’s portion of BHH’s
operating profits. Headgear will also finance all the production of
product purchased by the BHH.
Founded in 1992, Headgear Sportswear is today a wholesale designer and
marketer of young men's and junior's apparel in the U.S., with a
portfolio of brands such as Blac Label, Blac Label Pink, Blac Label
Gunmetal and Tru Ambition footwear. Headgear's brands are sold through
multiple retail channels.
“We are very excited to execute on this
broad-based partnership with Headgear, which has re-energized our
company during a difficult economic climate,”
said Glenn Palmer, Chief Executive Officer of Blue Holdings, Inc. “By
combining our respective core competencies and creative vision, we will
enhance and strengthen the product offerings under the Antik, Yanuk, and
Taverniti brands as well as broadening their base of distribution. The
partnership of these two companies has tremendous synergies and we look
forward to a long and successful relationship.”
Jeff Watson, Chief Executive Officer of Headgear Inc., stated, “We
are looking forward to teaming with Blue Holdings and providing the
expertise that has enabled us to continue to grow our house of brands
profitably in a difficult retail landscape. The brand equity of Antik,
Taverniti So and Yanuk speak for themselves and we feel that working
closely with Blue Holdings, we can fully round out the collections and
offer complete lifestyle brands.”
About Blue Holdings, Inc.
Blue Holdings, Inc., directly and through its wholly owned subsidiaries,
Antik Denim, LLC and Taverniti So Jeans, LLC, designs, develops,
manufactures, markets, distributes and sells high-end fashion jeans,
apparel, and accessories under the "Antik Denim," "Yanuk," "Taverniti So
and Jeans," brands both in the United States and internationally. Blue
Holdings currently sells men's, women's and children’s
styles. Antik Denim, Yanuk and Taverniti So jeans and apparel are made
from high-quality fabrics milled in the United States, Japan, Italy and
Spain, and are processed with cutting-edge treatments and finishes. Blue
Holdings' concepts, designs, embellishments, patent-pending pockets and
great attention to detail and quality give it a competitive advantage in
the high-end fashion jeans market.
Forward-Looking Statements
This release contains "forward-looking statements" that include
information relating to future events. Examples of forward looking
statements included in this release include statements regarding the
proposed joint venture with Headgear Inc. Forward-looking statements
should not be read as a guarantee of future performance or results, and
will not necessarily be accurate indications of the times at, or by,
which that performance or those results will be achieved.
Forward-looking statements are based on information available at the
time they are made and/or management's good faith belief as of that time
with respect to future events, and are subject to risks and
uncertainties that could cause actual performance or results to differ
materially from those expressed in or suggested by the forward-looking
statements. Important factors that could cause these differences
include, but are not limited to: fluctuations in demand for Blue Holdings’
products, the introduction of new products, Blue Holdings’
ability to maintain customer and strategic business relationships, the
impact of competitive products and pricing, growth in targeted markets,
the adequacy of Blue Holdings’ liquidity and
financial strength to support its growth, and other information that may
be detailed from time to time in Blue Holdings’
filings with the United States Securities and Exchange Commission. For a
more detailed description of the risk factors and uncertainties
affecting Blue Holdings, please refer to the Company's recent Securities
and Exchange filings, which are available at www.sec.gov.
Blue Holdings undertakes no obligation to publicly update or revise any
forward-looking statements, whether as a result of new information,
future events or otherwise.