Tarrant Apparel Group and Federated Department Stores Amend
Exclusive Distribution Agreement for American Rag CIE
~ American Rag CIE to be Available in Approximately 300 Stores for Fall of 2005
~
LOS ANGELES, March 9 /PRNewswire-FirstCall/ -- Tarrant Apparel Group
(NASDAQ:TAGS), a design and sourcing company for private label and private
brand casual apparel, today announced that its subsidiary, Private Brands,
Inc., has signed an amendment to its exclusive distribution agreement with
Macy's Merchandising Group, LLC (MMG), the sourcing arm of Federated Department
Stores, Inc., for American Rag CIE, a casual sportswear collection for juniors
and young men's. Under its agreement with MMG, Private Brands designs and
manufactures American Rag CIE merchandise, which is then sold exclusively in
Federated department stores across the country. By the terms of the amendment,
MMG has committed to an annual minimum purchase commitment over an extended
period of 7 years. The original agreement included a minimum purchase
commitment of only two years. MMG also acquired a license to design and
manufacture directly American Rag CIE non-denim men's apparel.
The amendment reaffirms the partnership between MMG and Private Brands. "Exclusive brands are key in differentiating our assortments," said Leonard
Marcus, President of Macy's Merchandising Group, LLC. "American Rag gives our
juniors' and young men's customers the contemporary style they want, and can
only get, from Macy's." Barry Aved, President and CEO of Tarrant Apparel Group, commented, "We are very
pleased that based on the positive consumer response to the brand, Federated
has strengthened its commitment to the American Rag brand and American Rag's
distribution will significantly increase in 2005. Through our collaborative
relationship with Federated, we have developed a unique model for continued
growth of this marvelous brand. The solid results that have been produced
through our mutual dedication to brand building is a refreshing example of the
power of partnering, and we would like to thank Federated for sharing the
American Rag vision." The initial 100 store roll-out in 2003 has been steadily expanded and by Fall
2005 the American Rag collection will be available in approximately 300 Macy's
locations.
Tarrant Apparel Group serves specialty retailers, mass merchants, national
department stores, and branded wholesalers by designing, merchandising,
contracting for the manufacture of, and selling casual and well-priced apparel
for women, men, and children. Through its subsidiary, Private Brands, Inc.,
the Company designs, markets, and manufactures privately owned brands,
including American Rag CIE, as well as maintains exclusive license agreements
with several celebrity brands such as Jessica Simpson and Beyonce Knowles'
House of Dereon.
Except for historical information contained herein, the statements in this
release are forward-looking and made pursuant to the safe harbor provisions of
the Private Securities Litigation Reform Act of 1995. Forward-looking
statements are inherently unreliable and actual results may differ materially. Examples of forward-looking statements in this news release include the
anticipated sales and availability of American Rag merchandise. Factors which
could cause actual results to differ materially from these forward-looking
statements include satisfaction of conditions to closing of the financing
transaction, including conditions that are outside of the parties' control such
as consumer acceptance of new products. There can be no assurance that these
conditions will be satisfied, that the sale transaction will be consummated or
that the Company will use the proceeds from the financing transaction as
anticipated. The Company undertakes no obligation to publicly update or revise
any forward-looking statements, whether as a result of new information, future
events or otherwise. DATASOURCE: Tarrant Apparel Group CONTACT: Corazon Reyes, Chief Financial Officer, +1-323-780-8250; Melissa Myron/Lila Sharifian, Investor Relations, +1-212-850-5600, all for Tarrant Apparel Group
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