Betsy White

Perry Ellis Files Shelf Registration

Perry Ellis International filed a shelf registration Thursday to sell $200 million of common stock, preferred stock, debt securities and warrants at in the future. The Miami-based clothing manufacturer also said that certain shareholders might be selling up to $30 million in common stock under the shelf registration, which can be filed up to two years in advance so that a company can raise funds quickly of it needs to. No specific terms or dates for future offerings were announced. This news comes a day after Miami-based Perry Ellis said it and Westport Corp. have agreed to not renew their license agreement for men’s accessories including wallets, bags and gift sets under the Perry Ellis family of brands. The agreement expires Dec. 31. After that, Perry Ellis said it would take over all aspects of its accessories business.

Ron Burkle Reports 6% Stake in American Apparel

Billionaire investor Ron Burkle has amassed a 6% stake in American Apparel Inc., the cash-strapped clothing retailer, according to a securities filing. Mr. Burkle paid roughly $5.9 million for 4.3 million shares of the Los Angeles-based company, known for its American-made, high-priced basics such as T-shirts and leggings.

Forever 21 Pursues Big-Store Branding

Forever 21 opened its doors at Times Square on June 25, occupying four floors and including 151 dressing rooms and 32 cash registers. The privately held, Los Angeles-based company is expanding aggressively at a time when most retailers are holding back or downsizing, a move enabled in large part by the recession. Forever 21 snapped up real estate vacated by brands such as the now-bankrupt Mervyns LLC chain that were forced to downsize or close because of dwindling sales. Teens continue to swarm Forever 21's piles of inexpensive, high-fashion-imitating party dresses and tank tops. But moving into cavernous spaces, like the 90,000-square-foot spot near 46th and Broadway, is forcing the chain into new categories like menswear, children's clothing and beauty, where its hold on consumers is less certain. The Times Square store will be the brand's biggest location, taking over the space of a former Virgin Megastore.

Fashion Retailer H&M's Second-Quarter Profit Up 24%

Fashion retailer Hennes & Mauritz AB reported a 24% rise in fiscal second-quarter net profit and signaled optimism about its international expansion plans. And while same-store sales dropped in May, the company said June was off to a good start. H&M's net profit increased to 5.21 billion Swedish kronor ($669 million) in the three months ended May 31 from 4.19 billion kronor in the year-ago period. Sales rose to 27.03 billion kronor from 26.54 billion kronor. However, H&M's same-store sales fell 4% in May compared to the same month last year. Total sales in May rose 6%.

Gap Tries China for Size with Four New Stores

Gap, the US clothing retailer, is to open four stores and an e-commerce operation in China late this year in its most significant overseas expansion in more than a decade. The retailer said it would open two stores in Beijing, including one on Wangfujing, the capital’s main shopping street, and two in Shanghai. All four stores, to be owned and operated by Gap, will be large by local standards at more than 17,000 sq ft and will sell clothing from its adult, kids and baby Gap lines. Gap said in a statement that the move into China “marks the start of a long-term, multi-channel consumer market entry strategy . . . that involves more stores in major regions, including Hong Kong, in the coming year.” The company has named two executives with previous experience of the Chinese market to head its operation in the country: Redmond Yeung, former president of the China business of Best Buy, and Lorenzo Moretti, former chief operating officer of Tesco’s Chinese stores.

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