Phoenix Footwear Group, Inc. announced that it has acquired the assets of the Paradise Shoe Company, LLC. Terms were not disclosed. Paradise Shoe Company, based in Phoenix, AZ, is the exclusive licensee of the popular Tommy Bahama line of men's and women's footwear, hosiery and belts. The acquisition is effective as of this date.
Concurrent with this transaction, Phoenix Footwear has signed an exclusive license agreement with the Tommy Bahama Division of Oxford Industries, Inc., owner of the Tommy Bahama brand, whereby Phoenix Footwear will design, manufacture and distribute the Tommy Bahama line of men's and women's footwear, hosiery, belts and men's small leather goods and accessories. Terms of the license agreement were not disclosed.
Paradise Shoe Company, through its exclusive license of Tommy Bahama footwear, hosiery and belts, posted full-year sales of $20.5 million in 2004, and $11.8 million in the first six months of 2005. Michael Reina, former president of Paradise Shoe Company, has joined Phoenix Footwear as national sales manager of the unit, which will be known to the trade as Tommy Bahama Footwear. Covington Associates LLC advised Paradise Shoe Company in connection with the transaction.
James R. Riedman, chairman of Phoenix Footwear, commented, “Today's acquisition and licensing agreement adds another profitable lifestyle brand with strong brand recognition to our wearables portfolio. It is a perfect strategic fit with our recent Chambers Belt acquisition, providing us an up market lifestyle brand for independent specialty and better department store distribution. Working with Michael Reina, we seek to leverage our established merchandising, sales and marketing resources to increase the brand's distribution and enhance its revenue and profit potential.”
“We are very excited to have this opportunity to work with Phoenix Footwear as our licensee,” commented Tony Margolis, CEO of Tommy Bahama. “All our licensed products are crucial to us showing the Tommy Bahama lifestyle to its fullest. Phoenix will bring the same vision and quality to their products that we have in our sportswear and I am confident the market will respond well.”
