Buxbaum Group News - April 12, 2006

CITY OF COMMERCE, Calif. (4/12/06)–The acquisition and renovation of a 170,000-square-foot production facility in Honduras is the latest step in Buxbaum Group’s turnaround of Indosheen, a fashion-forward provider of knitwear design and sourcing services to the apparel trade.

This latest development follows the purchase last year of Indosheen’s assets by Maya Apparel Group Inc., a new corporation in which Calabasas, Calif.-based turnaround investor Buxbaum Group has a controlling interest. David Gren, founder of the knitwear company, continues to direct day-to-day operations as president and a partner in Maya, which does business under the Indosheen trade name.

The City of Commerce-headquartered Maya purchased the San Pedro Sula, Honduras factory building in December and launched a renovation project that will include the addition of a number of amenities and special services for the facility’s 400 employees, as well as incentive programs. Initial production began in January and, once in full swing this spring, the facility will turn out anywhere from 300,000 to 700,000 units a month. Additional volume will be contracted out to other facilities in Honduras.

“Ownership of this facility will allow us to gain a greater degree of control over production in order to ensure on-time delivery, as well as provide a level of quality that will meet the most stringent criteria, including those of major retailers like Target, Wal-Mart and Federated Department Stores,” said David Gren, president of Maya Apparel.

“When the project is complete, the factory will include air conditioning and an on-site medical facility,” he continued. “We firmly believe that the best way to ensure quality is to create a working environment in which employees can look forward to coming to work. Combining this environment with a pay scale that’s heads above the local standard and excellent financial incentives should result in a highly motivated work force.”

Maya has also recruited a team of professional employees, who will remain in Honduras to oversee quality control, coordinate international shipping, and deal with the rapidly changing laws governing international commerce. Through site visits and inspections, the local professionals will also be charged with enforcing quality controls at the contract facilities.

Buxbaum Group chairman and CEO Paul Buxbaum noted that the moves in Honduras followed a series of initial steps in the U.S. “To take the company to the next level, we infused Maya with capital, hired additional customer service personnel, and dramatically changed the operations and production procedures of the business,” he said.

Indosheen’s sales were expanding at a dizzying pace, but the company wasn’t structured to accommodate that rate of growth,” explained Gren. “Its infrastructure was more appropriate for a company generating annual sales of $15 million than the $25-million operation it had become, making it increasingly difficult to track orders or maintain a high level of customer confidence. Until Indosheen’s infrastructure can be sufficiently built, annual sales volume will be capped at approximately $25 million. After that, growth will proceed at a measured pace, with sales expected to reach the $50 million to $60 million range in about three years.”

About Buxbaum Group - Buxbaum Group has built its reputation for over 30 years as one of the largest liquidators and appraisers of retail and wholesale inventories, as well as machinery and industrial equipment, across North America. While continuing to operate in those areas, the company has shifted its primary focus in recent years to turnaround investing along with specialty financing. Additionally, a subsidiary, Pathway Strategic Partners, provides turnaround, expansion and/or downsizing strategies, in conjunction with other advisory consulting and management services.

Press Contacts: At Buxbaum Group, Paul Buxbaum (800) 990-6820; at Indosheen, David Gren, (323) 720-4600 ex. 201; at Parness & Associates Public Relations, Lisa Kreda or Bill Parness, (732) 290-0121.