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Articles Of Interest

Counterfeiting Sources Identified
Page 1

Gina Bra Form Protestors
Page 1

WTO Probes Into US Cotton Subsidies
Page 1

Federated Completes Lord & Taylor Sale
Page 1

The Magic of Makeup
Page 2

Bra Unhooking Record
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Fast Retailing to Open Soho Store 
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Hyosung to Acquire Tongkook 
Page 4


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Pink to Stand Alone
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September Retailers' Sales Review  
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The American Red Cross

  October 15, 2006                                            Issue #179


6/24

             McPete -Sez, 
    
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    EU Identified Main
 Counterfeiting Sources
The European Commission has identified China, Russia, the Ukraine, Chile and Turkey as key targets in its fight to tackle counterfeiting – and says it may eventually resort to legal action at the World Trade Organization to overcome the problem.
In a European Union business survey, the countries were highlighted as priorities for anti-counterfeiting activities and resources, with China responsible for two thirds of fake goods entering the EU. 
However, the commission said that China, termed as category 1 in the anti-counterfeit drive, is the country where the EU has established the most in-depth cooperation to address the problem.
The commission said that the EU is not excluding the possibility of action at the WTO against such infringements, but stressed it is not creating a ‘black list’ and is instead looking to focus on a joint fight against piracy. 
Russia, Ukraine, Chile and Turkey – placed as category 2 – are known to have made serious commitments to adopt the highest standards of IPR enforcement, but are expected by the EU to “considerably step-up their efforts and tackle serious deficiencies.”      



19/24  

Gina Form Bra Protestors 
Receive Severance Payments

Gina Form Bra Co, owned by Hong Kong's Clover Group, has offered severance payments to workers at its Thai lingerie factory following protests staged to demand compensation.
Originally the company refused to pay, but reconsidered after about 500 workers protested on October 8, outside the US Embassy in Bangkok. 
The owner of Gina Bra Form, Hong Kong-based Clover Group International, will give employees severance payments when the factory closes at the end of October and moves to China. 
Gina, which makes undergarments for Limited Brands’ subsidiary Victoria's Secret and other American companies, reportedly employs about 1,600 workers.


2/24   
WTO Probes Into US 
   Cotton Subsidies
The World Trade Organization has launched a probe into whether the US is complying with an order to axe illegal subsidies paid to its cotton farmers.
The investigation - which is expected to take three months - was brought about by Brazil, which accuses the US of not obeying a ruling made in 2004.
Brazil believes the US paid out $12.5bn of subsidies to farmers between 1999 and 2003.
Moreover, Brazil alleges that the US has kept its position as the world’s second-biggest cotton producer because of the subsidies.
If Brazil’s accusations are true, then the country could be allowed billions of dollars worth of retaliatory sanctions against US products. 
The US, however, maintains it has made the changes necessary and that it has been complying with all WTO rules. 
 


  Kristin 'wearing' corset and thong.  All body painting 
                   is
by Mark Schmudde.  
        Photographed by Johnnie Welborn

             See more pictures on page 2



4/12 
Federated Completes Lord 
        & Taylor Sale
Federated Department Stores has completed the sale of its Lord & Taylor division to NRDC Equity Partners.
Federated said the final sale price was adjusted to US$1.08bn. 
This compares with a sale price of $1.20bn included in an initial agreement announced on June 22.
The difference is mostly because Federated has agreed to sublease to NRDC certain properties due to restrictions in the leases underlying those properties. The rental income on these properties is expected to be about $8.6m per year. 
The Lord & Taylor division includes 48 stores in New Jersey, New York, Illinois, Massachusetts, Connecticut, Maryland, Virginia, Michigan, Pennsylvania, and the District of Columbia, as well as a distribution centre in Wilkes-Barre, Pennsylvania.
Federated operates more than 850 department stores in 45 states, the District of Columbia, Guam and Puerto Rico under the names of Macy's and Bloomingdale's. The company also operates macys.com and Bloomingdale's By Mail. 
The company bought Lord & Taylor in August 2005 as part of its merger with May Department Stores. It then put the unit up for sale on the grounds that it did not fit its strategy of growing the Macy’s and Bloomingdale’s brands.


23/24                Photographed by Michael Brouwer

   
Delta Mills Filed for 
            Chapter 11

Fabric maker Delta Mills Inc has filed for Chapter 11 bankruptcy protection in the US Bankruptcy Court for Wilmington, Delaware.
Company parent Delta Woodside Industries Inc, and Delta Mills subsidiary, Delta Mills Marketing, also filed voluntary petitions for bankruptcy protection. 
Before the bankruptcy petitions, the companies were negotiating to sell the business as a going concern – but discussions with the unnamed party broke down shortly before the filings.
Now Delta Mills intends to wind down its operations but says it still expects to fill most existing orders. The Beattie plant will continue to operate for “several weeks,” and the Delta 3 finishing plant will continue to run for a longer period.
Headquartered in Greenville, South Carolina, the company employs about 600 people. 
Last month Delta Mills revealed it was unable to make a $1.49m interest payment on its outstanding senior notes because of difficult business conditions. 

              
3/12
      Smuggled Textiles and Garments Hurting Indonesia
20-30% of the textiles imported into the Tanah Abang retail market are believed to have entered Indonesia illegally, according to Jakarta Retailers Association chairman Haris MM.
Smuggled textiles and garments are also a problem for the Mangga Dua retail market in Central Jakarta. In that market, about 40% of garments are said to be smuggled and 60% of textiles. 
According to Haris, the majority of smuggled textiles are from China, South Korea, India and Thiland.
The illegal trade is hurting domestic manufacturers, he pointed out, calling on the government to control tightly bonded areas and special economic zones.
Illegal transshipments of textiles and apparel through Indonesia has also been a problem and recently prompted a Memorandum of Understanding with the US which aims to tackle this. 


21/24

ANCI Calls for Change
   in Labeling Laws
The Italian footwear industry association ANCI is calling on the European Union to change its labeling laws so that manufacturers have to declare where products are made. 
“The consumer has the right to know exactly where the product is coming from,” said ANCI president Rossano Soldini in a statement.
Under current rules, shoe makers can outsource parts of production but still sell the shoes under their own made-in-Europe label. 
ANCI says its action is intended to protect EU jobs. 


7/24
Warnaco Signs E-commerce
                    Deal
Multi-brand apparel maker The Warnaco Group has signed a long-term deal for a range of services from Accretive Commerce including store-front design, e-commerce, customer care, fulfillment, logistics, and additional channel management services for the Calvin Klein Underwear and Speedo brands. 
Warnaco said it has identified the web as a critical element in its long-term growth strategy and is looking to deliver an eCommerce platform "to better market and merchandise Calvin Klein Underwear's cutting edge design and Speedo's performance and innovation." 

                   
Reps Wanted

Lingerie distributor looking for US independent 
sales representatives for about 300 items. Contact 
Michael at (909)468-2705
www.sensualmystique.com

5/6
180 Aubade Workers Axed
Calida Holding, the Swiss clothing producer, said it will lay off about 180 out of 500 jobs at the Aubade lingerie business in a cost-cutting attempt. 
Calida wants to boost efficiency and create a strong economic base to develop France-based Aubade, it said, and plans to move production to Tunisia are part of this strategy.
The company will hold discussions with worker representatives.
Costs from the restructuring will affect this year’s profits, Calida said. It still expects sales growth of 20% for 2006 and an improved operating profit. 
Calida, which bought Aubade in 2005, posted sales of CHF176.7m (US$141.15m). 


                   Reps Wanted
Fast Growing Sexy Lingerie company looking for Independent Sales representatives for the West Coast, and Mid West/Central/Southeast Regions.  
Marc
Ph(866) 615-2175 marc@gworldcollections.net

4/6
   JCPenney Opened 20 
         New Stores
JCPenney opened 20 new stores across the country on Friday, October 6, as part of its accelerated growth strategy.
“There is growing demand for JCPenney stores in markets across the country,” said Myron E (Mike) Ullman, III, JCPenney chairman and chief executive officer. 
“We are addressing this by launching the most aggressive store opening program in more than 25 years, which will allow us to offer our customers even more access to style and quality at smart prices.”
Fuelled by the success of its new off-mall format, continued improvement in operating results and strong free cash flow, JCPenney expects to open at least 50 stores per year from 2007 through 2009. 
80-90% of the new JCPenney stores, including 17 of the 20 opened on 6 October, will adopt the off-mall format.
“Our off-mall stores have exceeded our expectations, generating higher sales per square foot than our mall-based stores and more frequent visits by customers,” continued Ullman. 

 
                             
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