Aug 1 2013
It has just been reported that west coast brand, American Apparel has bought New York City based clothing company Oak. This acquisition is the brand’s first ever purchase of an independent retailer. American Apparel chairman and CEO, Dov Charney was quoted saying, ”I saw an opportunity to build Oak without a lot of extra costs. They can leverage our manufacturing capabilities, our POS [point-of-sale] and RFID [radio frequency identification] systems, our warehousing, and our freight and distribution.” Charney added, ”The Oak aesthetic is a very different look and feel than American Apparel, and it’s noncompetitive in price.”
Oak will be left untouched so don’t throw a fit. The brand, which operates two retail locations, an e-commerce site and wholesale, will operate as a separate division of American Apparel. The merger should help Oak gain an international clientele with the first possible store opening outside of New York City being in Seoul, Korea. Charney aims to multiply the company’s $5 million annual sales. In addition, Jeff Madalena and Louis Terline, the duo behind Oak, will advise the American Apparel team on product development thus forming a synergistic relationship.
No word yet on Oak advertisements replacing the American Apparel ads on every fashion site in existence.