NEW YORK — Accessory Network Group is giving the luxury segment a more prominent role as it positions itself as a key player at both ends of the price spectrum.
The privately held branded accessories manufacturer has hired Michele Ateyeh, who is better known by her nickname “Mickey,” to become president of its prestige brands division. It’s a first step in what ANG chairman and chief executive officer Abe Chehebar said is the firm’s goal to move full steam ahead in the higher-end segment, which includes its wholly owned luxury brand Ghurka, as well as the Calvin Klein and Isaac Mizrahi licenses.
“We found that the prestige area is developing, and we believe we are beginning to put the infrastructure in place to make us more efficient in this area,” said Chehebar. “Right now, the prestige area represents a small percentage of business for the firm, but we believe it could account for 50 percent incremental top-line growth in the next few years. Mickey’s role is to lead it, and that could include acquiring additional brands if there’s a fit and an untapped niche, although there’s no clock ticking right now to do a deal.”
Industry sources have estimated ANG’s worth at $200 million.
Chehebar’s announcement comes on the heels of speculation that ANG was preparing to seek a sale of Ghurka, which it purchased through its affiliate Vergier Holdings in 2003. In July, Chehebar said ANG had retained Financo to consider strategic alternatives for the brand, following ANG’s acquisition of LeSportsac in February for a reported $100 million.
ANG had also signed a license in 2005 to produce better handbags and cold-weather goods for Calvin Klein. In May, the firm announced a partnership with Isaac Mizrahi to create a line of bridge handbags under the Isaac Isaac Mizrahi label that will debut at the November accessories market. ANG, through its animations division, also works on several licenses for accessories for entertainment companies, including Walt Disney, Warner Bros. and Nickelodeon and owns a hosiery division, Planet Sox.
Soon after Financo was hired regarding Ghurka, Kenneth Landis, interim ceo of LeSportsac and Ghurka, chief operating officer of ANG and executive vice president of its luxury division — the former designation of the prestige area — resigned. Steve Jacaruso, former chief operating officer and chief financial officer of LeSportsac, became president of LeSportsac. Landis’ other roles remained open. Chehebar considers Ateyeh’s appointment at the firm to be a new position.
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“When we acquired LeSportsac, we evaluated our portfolio of brands and considered the possibility of divesting the Ghurka brand,” said Chehebar. “It had a very different model for production from our other brands. But through the process of analyzing it, the growth potential of the brand became more clear. We had so many companies interested in purchasing it, but we realized if we had the right leader we could grow its profile.”
Ateyeh, who will begin her role at ANG on Wednesday, was most recently president and chief operating officer of Lambertson Truex, where she helped the independent luxury handbag firm improve its infrastructure and achieve other goals, which included outside investment. Luggage maker Samsonite acquired a majority stake in Lambertson Truex in July, and Ateyeh transitioned into a consulting role at the firm, which has now ended. Prior to working at Lambertson Truex, Ateyeh was principal, president and ceo of Angela Cummings Fine Jewelry. She has also held positions at Hermès and Tiffany & Co.
“It will be a tremendous opportunity for me to manage these prestige brands and work with the independent teams for each of these brands,” said Ateyeh. “The recognition and respect that these prestigious brands have in the marketplace create a tremendous platform for growth through creativity and effective execution.”
Chehebar hired John Bartlett last year to design Ghurka. Bartlett’s first collection for Ghurka of men’s accessories hit its four stores this fall to strong response. Chehebar said sales are up 19 percent over last year. Bartlett’s women’s line is set to debut at retail next month, and Chehebar believes it has potential for growth. He also anticipates boosting Ghurka’s retail network, opening it up to wholesale again and exploring new categories at the brand, like outerwear, footwear and a fragrance.
“When we acquired Ghurka and began working with brands like Calvin Klein, people would say to us, ‘Well, you’re a mass company, and what do you know about luxury?'” said Chehebar. “We moved quickly to put a good team in place at all the brands, like hiring John Bartlett, and in a very short time we learned. That’s something we will continue to emphasize.
“We’re one of the few companies who are able to do a luxury brand like Ghurka and then [a] private label for Target. And having all these brands together, it’s very strong firepower.”