Aussie Apparel Group announced that it has signed a definitive agreement with Irvine, CA based GBI to license the “Bluetorch Brand” for apparel and certain other categories. Aussie Apparel has the option to buy the brand in 2006. Additionally, they have the first right of refusal to license Bluetorch worldwide in all product categories exclusive of “media.” Beyond apparel, other categories that could utilize the Bluetorch name include accessories, headgear, footwear and electronics. Bluetorch, a nationally syndicated television series licensed to Fox Sports Net, presents a cutting edge approach to extreme sports coverage.
Bruce MacGregor, President and CEO of Aussie Apparel said, “This is the first of a number of announcements we expect to make over the next few weeks dealing with a revised strategy for our portfolio of brands with Bluetorch being the preeminent label. The Bluetorch label is unique for the core shop and specialty chain distribution channel in that it can cross all extreme sports categories, thus alleviating the need for us to market multiple brands in this channel. As a result, this Bluetorch agreement will allow us to focus all of our other resources and brands towards the higher volume mid-tier and mass-market distribution channels. Every aspect of our business from finance and corporate structure, to sales and marketing, are now under review in terms of being brought into alignment with this revised strategy.”
Added MacGregor, “The Bluetorch series has been considered by many to be a premium platform for presenting its vast audience with cutting edge music and the most exciting lifestyle entertainment in the 'Extreme Sports' categories. The Bluetorch brand is synonymous with the world of 'Extreme Sports' and it is our intention to take advantage of the awareness of the Bluetorch name within this significantly growing target audience. For this consumer, the Bluetorch label represents a potential lifestyle or frame of mind. Our marketing surveys support the perception that the Bluetorch brand will be strongly accepted by the core retailers and specialty shops worldwide.”
Marvin Winkler of GBI stated, “The licensing of Bluetorch goes far beyond the design and sale of apparel. Bluetorch is a lifestyle platform that has the potential of becoming a major revenue engine across a spectrum of product categories. After numerous inquires, we have entered into this agreement based upon our belief that a determined and knowledgeable management team could achieve success with our global brand. It is evident that the key management personnel of Aussie Apparel have the experience to formulate the strategies to launch and sustain the Bluetorch brand.”
Aussie Apparel anticipates delivering the first Bluetorch merchandise in the fourth quarter of 2004.
