Gramicci Aims To 'Be There' For Retailers

Business is tougher than ever, especially in the apparel category where shoppers are often putting off purchases. Retailers are reducing inventories – buying closer to demand – and looking for partners who understand their position and deliver true innovation to get customers excited again. With that as a background, Gramicci has kicked off an initiative called Being There, the latest in a series of moves that’s helping revitalize the 26-year-old brand.

"Being There means Gramicci is going to be there for our dealers with enhanced products, prices and profit margins; as well as better sales service, customer care and marketing tools to aggressively help retailers address this economy," explains Marty Weening, president of the growing, eclectic outdoor lifestyle apparel company.

The initiative got underway earlier this year with the hiring of a new vice president of sales, Patricia Babka, who has the experience, the respect of the industry and the passion that will further burnish the Gramicci image with existing customers, as well as introduce it to new ones. Babka has vast outdoor apparel experience with names such as Columbia and The North Face.

Another part of Being There is literally "being there." Gramicci just opened a centrally located satellite sales showroom in Boulder, Colo., which will also serve as Babka's home base. With travel to trade shows or to corporate headquarters limited in this economy at many retailers, the Buxbaum affiliate sought out an easily accessible location to bring its products closer to the trade.

"Not only is Colorado a central location," explains Babka, "it represents Gramicci's unique and outdoor personality."

In another effort to reach out to new and existing customers, Gramicci has fortified its already strong sales organization with the appointments of three additional sales representation firms and two independent reps to serve various parts of the U.S. The new teams bring hundreds of years of experience in outdoor apparel retailing.

Gramicci will also "be there" for customers with its Spring 2010 Collection of highly salable products to drive business. The line features 16 new proprietary fabrics, including a quick-drying product called Cascade, and eight new fabric finishes. Additionally, Evo-Tek— the natural and organic knitwear fabric successfully introduced last year in high-performance apparel —has been expanded into col-

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Gramicci’s lineup for women includes everything from casual hoodies, to pants and tops suited for work or leisure.

Filene's continued

winner, with the new owner vowing that it "is focused on maintaining the Filene’s Basement name and tradition." Syms, through a wholly-owned subsidiary, acquired 23 of the chain's 25 operating store leases, along with inventory, fixtures and leases for a distribution center, for total consideration of approximately $65 million, plus certain additional costs of Filene's Basement that were assumed by Syms.

"This is an excellent strategic opportunity for Syms," Marcy Syms, President and CEO, comments in a statement. "Syms has been in business for 50 years, and Filene's Basement for 100 years. Our businesses are highly complementary. We have long respected Filene's Basement as a worthy competitor and have the utmost respect for the institution and its traditions, brand and incredible customer loyalty. We are confident that leveraging Filene's assets with Syms' infrastructure will provide for a stable and profitable business and will position Filene's for renewed growth."

"In the end, we, our advisors and the court itself were very pleased with how this process played out," said Buxbaum

Group Senior VP Scott Rusczyk, who also served as President of FB Acquisitions II. "This outcome allows for the continuation of one of the industry's most iconic off-price brands under the direction of a well-established off-price retailer, while preserving jobs for most employees, maintaining relationships with many of the vendors that historically sold to the chain and preventing vacancies in over 20 properties where Filene's was an anchor. Given the disappearance of many prominent retail brands during the past 18 months, this outcome speaks volumes about the special place Filene's holds in the hearts of consumers."

Filene's Chief Restructuring Officer Alan Cohen adds: "Once the inventories were brought into the equation, we anticipated that the auction bids would top $40 million. So, the winning bid wound up being well above our expectations."

Discussing the disposition of the Filene’s Basement bankruptcy case, Cohen says he anticipates that unsecured creditors will be asked to submit proofs of claim in late September. That should set the stage for the company’s bankruptcy plan to be confirmed by November, with creditors expected to be paid a significant dividend before the end of the year.