NEW YORK — The Biflex Intimates Group has new owners and is poised to grow its business over the next several years with a two-tiered strategy: acquisitions and licensing ventures.
“The real growth of the business will be on the branded side,” said Eric Hamburg, president of Industrial Renaissance, a private equity firm based in Fairfield, Conn., that acquired the $200 million Biflex firm from Kellwood Co. in January. “We are looking for [intimate apparel] acquisitions and licensing partnerships, and we are exploring some and will continue to do so.”
Industrial Renaissance specializes in buying companies and positioning them for growth. The sale of Biflex was part of a major restructuring undertaken by the $2.6 billion Kellwood, which is seeking to restore itself as a top branded apparel company.
Biflex primarily produces private label bras for major stores and proprietary bra brands, such as the Delicates name for J.C. Penney. Now Biflex is aiming to bolster its revenues by expanding the licensed Izod Intimates label into the sleepwear, loungewear and bra arena for fall 2006.
For the moment, the Izod Intimates collection of bras, pajama sets and drawstring pants is the main building block, with estimated wholesale revenues in excess of $15 million since it was launched in February 2005. The Izod brand in intimates has been revamped as a lifestyle statement, with items that can be mixed and matched or merchandised together, depending on a retailer’s merchandising strategy, said Debby Long, president of Biflex.
“Our focus is on fashion with classic elements, and I think our retail accounts understand that,” said Long, noting that the collection is sold at 550 to 600 midtier department store doors, including Belk’s.
Pajama sets retail at about $44 to $72, bras are $26 to $30 and drawstring pants are three pairs for $18. Daywear items will be added down the line, she said.
Tom Fox, a board member of Industrial Renaissance and a consultant for Accenture, a global management consulting firm, said Biflex’s management team was a main selling point in purchasing the intimates firm.
“We thought the Biflex management team would become the dominant team in the industry,” said Fox.
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In addition to Long, who was associated with Maidenform Inc. for 15 years, the team includes two innerwear veterans: Joe McConnell, senior vice president of operations, and Bruce Getz, senior vice president of merchandising and design. McConnell was formerly vice president of strategic sourcing at Kellwood for seven years, and Getz served as vice president of Maidenform brands for 12 years.
Regarding the importance of sourcing issues for Biflex, McConnell said, “The key in the supply chain today is to be partnering up with factories or vendors that have value-added product development, as we do in Asia, where we’re closer to the source of fabric. That’s important for us, because it helps reduce our cycle time in the supply chain — which is critical for our customers, who are looking for quick response from us.”
As for marketing and advertising plans, Long said, “It is in discussion. We are working with PVH to do in-store marketing.”
Long was referring to Phillips-Van Heusen Corp., the licensor for Izod.