NEW YORK--(BUSINESS WIRE)--June 10, 2004--Candie's, Inc:
-- TKO To Purchase Company's Jeanswear Subsidiary
-- Grants Exclusive Licensing Agreement For BONGO Jeans
-- TKO Takes Equity Stake In CANDIE'S
Candie's, Inc. (together with its subsidiaries and affiliates, the
"Company" or "Candie's") today announced a long term strategic
alliance with TKO Apparel Inc. (together with its subsidiaries and
affiliates, "TKO"), a Miami-based apparel company that specializes in
the manufacturing of private label bottoms for national brands
including Levi's, Calvin Klein, Phillips Van Heusen and Perry Ellis.
Under the terms of the agreements, TKO will purchase Candie's
wholly owned jeanswear subsidiary, Unzipped Apparel LLC ("Unzipped"),
on or before February 1, 2005. The purchase price will be based upon
the tangible net worth of Unzipped at closing.
Candie's and TKO have also entered into a long term licensing
agreement, which will commence in August 2004, pursuant to which TKO,
through Unzipped, will design, manufacture and sell BONGO(R) jeans
throughout the United States. TKO will also purchase 1,000,000 shares
of Candie's stock for $2.2 million.
Commenting on the agreements, Neil Cole, Chairman and CEO of
Candie's stated, "The strategic alliance with TKO is significant as it
completes our transformation from an operating company to a brand
management company, while building on the success of Unzipped with
BONGO jeans. TKO brings a wealth of design and sourcing expertise,
which we believe will permit BONGO to continue to expand its market
share with the fashionable, high quality product that our customers
James Tate, CEO of TKO commented, "We are looking forward to
working closely with the Unzipped team. BONGO is a leader in the
junior jeans wear market and represents an exciting growth opportunity
for TKO. Our acquisition of Unzipped and our investment in Candie's
stock reflects our commitment to a fruitful and long term alliance for
Gary Bader, President of Sales, BONGO jeans commented, "Everyone
is very excited about this alliance. TKO is noted for their design and
sourcing expertise which will enable Bongo to better serve our core
customer. We are looking forward to working with them on a smooth
About Candie's, Inc.
Candie's, Inc. is in the business of licensing the CANDIE'S(R) and
BONGO(R) names on a variety of young women's footwear, apparel and
fashion products, and is a leading designer, distributor and marketer
of jeans wear under the Bongo brand through its wholly owned
subsidiary, Unzipped Apparel, LLC. Through its wholly owned subsidiary
Bright Star Footwear, LLC the company arranges for the manufacture of
private label men's footwear products for mass market and discount
retailers. For investor information please visit the corporate web
site at http://www.candiesinc.com.
CONTACT: Candie's, Inc.
Maria Dolgetta, 212-819-2084
SOURCE: Candie's, Inc.