Sub-Urban Brands Announces Strategic Initiative to Enter Premium Denim Marketplace; Company Cites Latest Proposal to Acquire a Denim Company to Capitalize on Fashion Industry's Fastest Growing Segment
LOS ANGELES, Oct 06, 2006 (BUSINESS WIRE) --
Sub-Urban Brands, Inc. (OTCBB:SUUB), a multi-brand apparel company pursuing high-margin revenue growth in the global fashion industry, has announced a new strategic initiative to drive growth from the premium denim market, the fastest growing category in the apparel industry for the past four years.
"Sub-Urban is committed to driving shareholder growth through the acquisition of promising brands that address major opportunities in the fashion marketplace, premium denim is one of the most important segments in fashion today," said Joseph Shortal, Sub-Urban's Chief Executive Officer.
Sub-Urban recently announced the execution of a non-binding letter of intent to acquire premium fashion denim company Reo Starr.
"The premium denim industry has seen extraordinary growth over the past four years and that growth is projected to continue," said Mr. Shortal. "As jeans have become an increasingly acceptable component of business and evening wear, a wardrobe staple suitable for any occasion, the appetite for premium jeans has grown exponentially."
The worldwide denim market has been valued at approximately $55 billion, with the U.S. market comprising $14.2 billion, according to ImagesFashion.com. These revenues have been validated by nationwide retailers such as Macy's and Nordstrom's, among other retailers, which are dedicating significant floor space to jeans that cost $150 and up. Major department stores have cited premium denim as the fastest growing categories, according to Bloomberg.
Statistics of the denim marketplace include:
-- A recent survey from the Monitor shows that 28 percent of women will buy dark blue denim as their next purchase, up from 17 percent in 1997
-- According to a recent survey 72% of women say they "enjoy wearing denim, according to Cotton Inc.
-- Reflecting a positive trend towards denim's ubiquitous popularity, imports of denim jeans expanded 15.8% to a record $4.6 billion, according to Cotton Incorporated's Supply Chain Insights.
"More and more consumers purchase premium denim to design their personal style," said Mr. Shortal. "As you add dimensions to blue jeans, you add ways in which people can further distinguish themselves."
"At the end of the day, Sub-Urban will enter the premium denim market sooner rather then later with proven product that reflects the integrity and a style that connects with today's growing denim consumer," said Mr. Shortal.
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