Word: apparel
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...hard to stick around in Velcro Valley. Successful firms have erupted from the Orange County youth-apparel industry to become globally recognized brands--among them, Quiksilver, Oakley, Billabong USA and Stussy. Yet just as many such labels--including Gotcha, Lightning Bolt, Vision Street Wear, Jimmy-Z, Maui & Sons, Mossimo and others--rode huge waves of sales only to wipe out in a few years...
...ever strapped on a holster beneath his well-worn cardigan, his company, Family Communications, Inc., is suing Gadzooks, alleging that the T shirts violate Rogers' privacy and wrongly benefit from his image. Plus, says his lawyer, "it's bad for the kids." A spokesperson for Gadzooks says the offending apparel has already been cleared from the shelves. Let's hope the whole thing blows over before Captain Kangaroo goes postal...
...College Licensing Company, which licenses apparel for 160 schools, released the code as a guide for companies that make officially licensed apparel...
Sometimes in its zeal to dole out corporate welfare, the Federal Government finds itself working at cross-purposes. In 1997 a government agency issued a $29 million insurance policy to protect a new garment-manufacturing plant built in Turkey by Levi Strauss, the world's largest apparel manufacturer. Meanwhile the U.S. Department of Labor was approving training grants and extended unemployment benefits for 6,400 workers whose jobs had been eliminated at 11 Levi's plants in this country--on the grounds that the layoffs were attributable to cheaper imports...
Industry analysts are skeptical, especially about the diversification plans. "If there's one thing I can tell you about apparel, it's that we do not need any more capacity in the U.S.," says Peter Caruso, a Merrill Lynch analyst who covers Toys "R" Us. Caruso also doubts that the company's dubious reputation for service will attract many buyers of electronics, who want sales personnel with up-to-date knowledge of competing products' features...