Sub-Urban Executes Letter of Intent to Acquire Leading Clothing Manufacturer The Apparel Agent
28 October 2006 - 6:01AM
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 the execution of a non-binding letter of intent to
acquire The Apparel Agent, one of the fastest growing manufacturers
of base garments and a leading competitor of American Apparel. The
Company expects that the milestone acquisition will provide it with
a core revenue stream, raise product margins and provide a solid
foundation for its flagship multi-brand portfolio. Based in Los
Angeles, The Apparel Agent operates a 39,000 square foot warehouse
facility with production, marketing, sales and customer service
capabilities. The company employs an experienced executive team in
addition to subcontracting nearly 70 contracted sewers and other
laborers. They also leverage international manufacturing
arrangements in Guatemala, China, El Salvador and India to handle
import pricing for mass quantities. The Apparel Agent manufactures
and then wholesales its high quality base garments to designers,
retailers and corporate clients who then embellish, re-brand and
sell the garments under their own labels. �Best of all, there will
always be a market for base garments which greatly mitigates the
risks typically associated with the fashion industry�s cyclical
nature,� adds Joseph Shortal, Chief Executive Officer of Sub-Urban
Brands. �With the acquisition of The Apparel Agent, Sub-Urban is
entering a very exciting new phase that we believe will allow us to
purchase garments at a greatly reduced price, which raises our
margins and maintain an even greater percentage of our profits in
house,� said Mr. Shortal. �Sub-Urban can now be considered to have
an economy of scale with integrated full-scale manufacturing,
design, marketing and sales capabilities all under one roof.�
Consummation of the The Apparel Agent acquisition is subject to
negotiation and execution of a definitive agreement and
satisfactory completion of due diligence investigations. About
Sub-Urban Brands Through its various brands Sub-Urban targets the
fashion industry's coveted youth marketplace, a consumer
demographic with more than $200 billion in spending power. Within
the next 18 months, Sub-Urban intends to expand its brand offerings
through global distribution networks in Japan, Canada, Australia
and 25 other European markets. Sub-Urban Brands, Inc. is a
multi-brand company which designs and markets cutting-edge
lifestyle apparel that targets the rapidly-growing
multibillion-dollar youth consumer marketplace. The Company pursues
robust revenue-generating opportunities within multi-tiered retail
markets that leverage multiple brands and market segments to create
financial success. Sub-Urban is committed to further expansion and
increased shareholder value through both the internal development
of intellectual property and acquisition of additional brands, as
well as to the establishment of new international marketing
alliances that will reinforce its recurring and non-recurring
revenue streams. Inspired by the energy and vigor of youth, urban
and music culture, Sub-Urban is initially focused on creating a
family of non-competing brands for its key target consumer, an
estimated 40 million 15-29 year olds. Sub-Urban's current portfolio
of trademarked apparel and accessory brands includes WHITEBOY� for
Men, WHITEBOY� Girl, Mash Culture Lab(TM), and PYT(TM) styles for
younger girls. Consistent with the company's high growth
strategies, the Company will be actively marketing these brand
offerings to Japan, Canada, Australia and 25 European countries.
For additional information, please visit www.whiteboy.com,
www.whiteboygirl.com, www.mashculturelab.com, and www.getcocky.com.
For more investor oriented information about Sub-Urban, visit
http://www.trilogy-capital.com/tcp/sub-urban/. For current stock
price quotes and news, visit
http://www.trilogy-capital.com/tcp/sub-urban/quote.html. To view an
Investor Fact Sheet, visit
http://www.trilogy-capital.com/tcp/sub-urban/factsheet.html.
Forward-Looking Statements This press release includes statements
that may constitute forward-looking statements, usually containing
the words "believe," "estimate," "project," "expect," or similar
expressions. These statements are made pursuant to the safe harbor
provisions of the Private Securities Litigation Reform Act of 1995.
Forward-looking statements inherently involve risks and
uncertainties that could cause actual results to differ materially
from the forward-looking statements. Factors that would cause or
contribute to such differences include, but are not limited to,
continued acceptance of the Company's products and services in the
marketplace, competitive factors, dependence upon third-party
vendors, availability of capital and other risks detailed in the
Company's periodic report filings with the Securities and Exchange
Commission. By making these forward-looking statements, the Company
undertakes no obligation to update these statements for revisions
or changes after the date of this release. Sub-Urban Brands, Inc.
(OTCBB:SUUB), a multi-brand apparel company pursuing high-margin
revenue growth in the global fashion industry, has announced the
execution of a non-binding letter of intent to acquire The Apparel
Agent, one of the fastest growing manufacturers of base garments
and a leading competitor of American Apparel. The Company expects
that the milestone acquisition will provide it with a core revenue
stream, raise product margins and provide a solid foundation for
its flagship multi-brand portfolio. Based in Los Angeles, The
Apparel Agent operates a 39,000 square foot warehouse facility with
production, marketing, sales and customer service capabilities. The
company employs an experienced executive team in addition to
subcontracting nearly 70 contracted sewers and other laborers. They
also leverage international manufacturing arrangements in
Guatemala, China, El Salvador and India to handle import pricing
for mass quantities. The Apparel Agent manufactures and then
wholesales its high quality base garments to designers, retailers
and corporate clients who then embellish, re-brand and sell the
garments under their own labels. "Best of all, there will always be
a market for base garments which greatly mitigates the risks
typically associated with the fashion industry's cyclical nature,"
adds Joseph Shortal, Chief Executive Officer of Sub-Urban Brands.
"With the acquisition of The Apparel Agent, Sub-Urban is entering a
very exciting new phase that we believe will allow us to purchase
garments at a greatly reduced price, which raises our margins and
maintain an even greater percentage of our profits in house," said
Mr. Shortal. "Sub-Urban can now be considered to have an economy of
scale with integrated full-scale manufacturing, design, marketing
and sales capabilities all under one roof." Consummation of the The
Apparel Agent acquisition is subject to negotiation and execution
of a definitive agreement and satisfactory completion of due
diligence investigations. About Sub-Urban Brands Through its
various brands Sub-Urban targets the fashion industry's coveted
youth marketplace, a consumer demographic with more than $200
billion in spending power. Within the next 18 months, Sub-Urban
intends to expand its brand offerings through global distribution
networks in Japan, Canada, Australia and 25 other European markets.
Sub-Urban Brands, Inc. is a multi-brand company which designs and
markets cutting-edge lifestyle apparel that targets the
rapidly-growing multibillion-dollar youth consumer marketplace. The
Company pursues robust revenue-generating opportunities within
multi-tiered retail markets that leverage multiple brands and
market segments to create financial success. Sub-Urban is committed
to further expansion and increased shareholder value through both
the internal development of intellectual property and acquisition
of additional brands, as well as to the establishment of new
international marketing alliances that will reinforce its recurring
and non-recurring revenue streams. Inspired by the energy and vigor
of youth, urban and music culture, Sub-Urban is initially focused
on creating a family of non-competing brands for its key target
consumer, an estimated 40 million 15-29 year olds. Sub-Urban's
current portfolio of trademarked apparel and accessory brands
includes WHITEBOY(R) for Men, WHITEBOY(R) Girl, Mash Culture
Lab(TM), and PYT(TM) styles for younger girls. Consistent with the
company's high growth strategies, the Company will be actively
marketing these brand offerings to Japan, Canada, Australia and 25
European countries. For additional information, please visit
www.whiteboy.com, www.whiteboygirl.com, www.mashculturelab.com, and
www.getcocky.com. For more investor oriented information about
Sub-Urban, visit http://www.trilogy-capital.com/tcp/sub-urban/. For
current stock price quotes and news, visit
http://www.trilogy-capital.com/tcp/sub-urban/quote.html. To view an
Investor Fact Sheet, visit
http://www.trilogy-capital.com/tcp/sub-urban/factsheet.html.
Forward-Looking Statements This press release includes statements
that may constitute forward-looking statements, usually containing
the words "believe," "estimate," "project," "expect," or similar
expressions. These statements are made pursuant to the safe harbor
provisions of the Private Securities Litigation Reform Act of 1995.
Forward-looking statements inherently involve risks and
uncertainties that could cause actual results to differ materially
from the forward-looking statements. Factors that would cause or
contribute to such differences include, but are not limited to,
continued acceptance of the Company's products and services in the
marketplace, competitive factors, dependence upon third-party
vendors, availability of capital and other risks detailed in the
Company's periodic report filings with the Securities and Exchange
Commission. By making these forward-looking statements, the Company
undertakes no obligation to update these statements for revisions
or changes after the date of this release.
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