NEW YORK — In a move to boost its hosiery business, Accessory Network Group has formed Planet Sox LLC, after acquiring the majority stake in E & E Hosiery Inc.
The addition of E & E will double the hosiery business for ANG, a manufacturer and licensor of luxury and main-floor accessories, according to Abe Chehebar, chairman and chief executive officer of ANG. Chehebar estimated Planet Sox’s volume at $60 million.
“We’re more of a fashion-driven resource; they’re more of a commodity-driven resource,” said Chehebar.
ANG produces hosiery products under license for Disney, Warner Bros., Bratz and Nickelodeon. L Licensing was only a small portion of E & E’s business; it has the license to produce Hot Kiss hosiery.
E & E’s main focus is on private label hosiery, slippers and home goods for large chain stores.
“We don’t have licenses,” said Elie Levy, who founded E & E in 1994. “It’s only 5 to 8 percent of our business. With ANG, I have my choice of licenses.”
Levy has been named ceo of Planet Sox and will run day-to-day operations.
“As a stand-alone operation, we were doing $20 million a year,” said Levy. “But as retailers started to shrink and tighten their vendor base, we decided to merge in order not to lose market share.”
Levy said the two companies were a fit because of their diverse vendors.
“[ANG] does a big Wal-Mart business and I do a big Kmart business,” he said. “There was very little overlap, overall.”
Chehebar sees the deal as part of an ongoing trend in the marketplace.
“By combining the two, we’re able to source more and be more effective,” he added.