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Dunbrooke Signs Partnership With Eagle Dry Goods
Vol. 793 
Feb. 24, 2011

Beginning March 1, Dunbrooke Apparel Corp. (asi/50930) will sell, market, distribute and warehouse the Eagle Dry Goods' (asi/51231) namesake brand and the Tommy Bahama line in the ad specialty industry, the suppliers announced this week. "This is part of our long-term strategy to expand from a single-label jacket supplier to a multi-line supplier that serves a whole range of customers," said Matt Gray, COO of Dunbrooke, in an interview with Counselor.

Financial terms of the deal were not released. Scott McFadden, executive vice president of Eagle Dry Goods, said the strategic alliance provides the Eagle Dry Goods and Tommy Bahama brands the chance to reach more customers through Dunbrooke's sales network. "We believe it's better for us, better for Dunbrooke and better for distributors to have one-stop shopping," said McFadden, who noted ownership of Eagle Dry Goods will remain unchanged.

Dunbrooke, whose roster of labels includes Reebok, Calvin Klein, Van Heusen and the NHL and NFL, will run operations for the Eagle Dry Goods and Tommy Bahama lines out of its Missouri location. Over the next three months, assets and inventory will be transferred from Eagle Dry Goods' Tennessee facility to Missouri, said Gray. Twelve to 15 current Eagle Dry Goods sales representatives will lose their jobs as a result of the transaction, but Dunbrooke expects to add five to 10 new jobs, including two sales positions, to support the brands.

Eagle Dry Goods plans to incorporate other employees of the company into an unrelated retail venture and are not shuttering the Tennessee facility, McFadden told Counselor. For the next several years, McFadden and Eagle Dry Goods' President Bill Reese will serve as consultants to Dunbrooke on the Tommy Bahama and Eagle Dry Goods lines, Gray said.

Although Gray declined to discuss specifics, he said that Dunbrooke is currently exploring more ways to expand its brand offerings and another deal could be announced by the fourth quarter of this year.

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