warnaco

Warnaco

WARNACO: AMERICAN MEN’S UNDERWEAR AND FASHION COMPANY, ACQUIRED BY PVH IN FEBRUARY 2013

The Warnaco company produces underwear for Calvin Klein, Olga, Valentino and Warner, and menswear for Ralph Lauren (Chaps line). It sells to over 16,000 shops and is considered the second largest American group in the underwear sector, just behind Sara Lee Playtex. It employs about 20,000 people.

Warnaco 1
Warnaco licence for Calvin Klein Jeans

CHAPTER 11

In 2001, the American company, which had been insolvent for a long time with regard to its licensed brands, went through its darkest period. In June, it was placed under Chapter 11, the bankruptcy protection clause, and went into receivership.

Its debts amounted to USD 2450 million. The first step to get back on track was to divest the GJM nightwear line and the Izka and Lejaby lingerie lines, as well as several management reshuffles. The restructuring bore its first fruit and, after 18 months, the Group exited the protection plan, reducing its debt to 247 million dollars. Despite a management team with some key roles not yet reassigned, the New York-based company ended 2002 with lower operating losses and debt than the previous year.

In the spring of 2003, the turnaround was finally underway when Nautica Apparel signed a multi-year licensing agreement with Warnaco for the production and marketing of its swimwear lines. Warnaco was back as one of the leading brands in the production of swimwear. But also in underwear, menswear, jeanswear and accessories with its own brands and licences for Calvin Klein, Chaps and Polo by Ralph Lauren, Speedo-Authentic Fitness and others.

WARNACO WAS ACQUIRED BY PVH IN FEBRUARY 2013

However, in December 2013, Warnaco’s European production site in Sesto Fiorentino closed its doors. The company lost the licence for the CK Calvin Klein brand in the European market, which was promptly taken over by its owner PVH Corp. from 2013, followed by the licences for Calvin Klein Jeans and Calvin Klein Underwear. A transaction worth USD 2.9 billion, or EUR 2.2 billion. The deal gave PVH more control of the Calvin Klein clothing brand as it combined Calvin Klein formal, underwear, jeans and sportswear lines.

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