American Apparel Acquires Retailer
Financial Terms Not Disclosed
Counselor Top 40 distributor American Apparel (asi/35297) has acquired high-end, New York-based retailer Oak. Financial terms of the deal were not disclosed. Following news of the transaction, Oak's Twitter feed read: "Thank you to all of our loyal followers. As for what's next for Oak, we are completely committed to maintaining our brand's vision and are excited for what the future holds."
A multi-brand retailer for men and women, Oak operates two New York specialty stores, as well as an e-commerce site. Its in-house line is also sold at Saks Fifth Avenue and Selfridges, among other stores. Louis Terline and Jeff Madalena, the co-founders of Oak, will reportedly continue to lead their company, while consulting for American Apparel. Media reports peg Oak's sales at about $5 million annually.
In its latest financial statement, American Apparel said its second-quarter wholesale business – which includes sales to the ad specialty and apparel decorating industry – grew by 16%. Q2 total net sales climbed 9% to $162.2 million, with comparable store sales increasing 7%. Ranked as the 14th largest supplier in the industry, American Apparel reported 2012 North American ad specialty sales of $96.8 million, a year-over-year increase of 7.3%.