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4 <strong>WWD</strong> thursday, march 31, 2011 Men’s Week<br />
Reinventing HMX<br />
by JEAN E. PALMIERI<br />
ThE sEA of sleeves in traditional tailored<br />
clothing departments is a yawn and needs to<br />
be revamped to appeal to today’s shopper.<br />
“We need to make tailored clothing departments<br />
more interesting,” said Joseph Abboud,<br />
president and chief creative officer of the hMX<br />
Group. “Men are the new women,” and are now<br />
more interested than ever in looking good.<br />
This presents an opportunity for the men’s<br />
wear industry, but only if they’re prepared to<br />
“shake things up,” he said.<br />
That’s exactly what he did to the product offerings<br />
at the former hartmarx Corp. when he came<br />
on board at the beginning of 2010. “We’re breaking<br />
the rules in a sexy, intelligent and masculine way.”<br />
Abboud and Doug Williams, chief executive officer<br />
of hMX, were the opening speakers at the<br />
Men’s Wear Industry CEo summit at the Mandarin<br />
oriental hotel in New York on Tuesday. They told<br />
the tale of how they rebuilt the shattered shell of<br />
the hartmarx business after being brought in by<br />
the <strong>com</strong>pany’s new majority owners, s. Kumars<br />
Nationwide Ltd. (sKNL), a publicly held Indian<br />
<strong>com</strong>pany.<br />
When Williams walked into the <strong>com</strong>pany in<br />
september of 2009, he found that there were fewer<br />
than $20 million in orders in hand. Retailers had<br />
walked away from the business because they were<br />
not convinced that the <strong>com</strong>pany could deliver because<br />
of its financial problems and subsequent<br />
bankruptcy filing. At the same time, the design of<br />
the labels had suffered and the “product did not<br />
have relevance to consumers,” he said.<br />
his first order of business was to convince<br />
retailers that the newly formed hMX, which<br />
had acquired only the assets of the business,<br />
would deliver on time. he also worked to lift<br />
the spirits of employees, who were terrified<br />
they would lose their jobs.<br />
Williams, who was raised on a farm in south<br />
Dakota, said most of the employees were like<br />
prairie dogs, hiding in their holes and expecting<br />
the worst. “We encouraged them to <strong>com</strong>e out,” he said.<br />
he quickly evaluated the product and realized that a<br />
major revamp was in order. Realizing that his strength is<br />
as “a business engineer” and not a merchant, he searched<br />
the market for “the best talent” and hired Abboud. Both<br />
Williams and Abboud had cut their teeth at Polo Ralph<br />
Lauren and learned firsthand about how to “build great<br />
product and execute it. That philosophy was drilled into us<br />
by Ralph Lauren himself,” Williams said.<br />
Both men believe that brands “have to have consistent<br />
DNA” in order to make a statement to retailers and on the<br />
Fairchild’s Men’s W<br />
“There’s nothing that<br />
we make that anyone<br />
has to buy.”<br />
— dOug WilliaMS, HMX<br />
sales floors. Williams likened it to “establishing goal posts,”<br />
where the <strong>com</strong>pany would use the past for inspiration but<br />
strive to create a modern offering.<br />
The jewels in the hMX crown include hart schaffner Marx,<br />
which is 120 years old, hickey freeman, which is 100, and<br />
Coppley, a Canadian label with 107 years of history. But despite<br />
their longevity, Williams said, the brands “had no relevance.”<br />
This represented “a great opportunity and challenge,”<br />
Abboud said.<br />
one of the firm’s strengths that could be exploited, they<br />
said, was the fact that their tailored clothing was produced<br />
Joseph Abboud and<br />
Doug Williams<br />
in <strong>com</strong>pany-owned factories in the U.s. and<br />
Canada. “As a an American designer,” Abboud<br />
said, it’s invaluable to be able to produce a<br />
quality garment in the U.s. Today, hMX makes<br />
more than 500,000 suits at its facilities, which<br />
retail from $795 to $3,000.<br />
But the design needed a major overhaul.<br />
“The first thing I saw was that the silhouette<br />
and fabrics looked backward,” he said. “That’s<br />
not where the market should go. We should<br />
take the lead. We needed creative discipline.”<br />
And so he created a leaner silhouette, softened<br />
up the construction of the suits, turned to<br />
more relevant fabrics and added <strong>com</strong>plementary<br />
casualwear offerings by creating “a bridge<br />
from tailored clothing to sportswear.” he said<br />
he sometimes pushed the envelope, offering<br />
nine different madras patterns instead of just<br />
three, for example, but the depth of the collection<br />
provided retailers with more options and<br />
showed the <strong>com</strong>pany’s <strong>com</strong>mitment to product.<br />
Abboud also created distinct collections for<br />
different seasons. “The thought of seasonal collections<br />
is so important in men’s wear,” he said.<br />
“Why take the options away from our customers.”<br />
Moves like this show that hMX is “not burdened<br />
down by the way things used to be,”<br />
Abboud said.<br />
he has the full support of Williams. “Too<br />
often the business side says to consolidate,<br />
and that stymies the creative process,” he<br />
said. Abboud added: “Creativity drives profit.”<br />
To help drive that profit, Williams turned to the<br />
back office to search for savings. shortly after<br />
joining, he closed the <strong>com</strong>pany’s “dusty” headquarters<br />
in Chicago and consolidated the five<br />
New York City offices under one roof on 42nd<br />
street. With everyone in one place, he then set<br />
out to “establish a culture of excellence.”<br />
Williams visited all of the <strong>com</strong>pany’s 1,700<br />
employees and assured them that the new management<br />
team was <strong>com</strong>mitted to keeping the<br />
<strong>com</strong>pany in business. With the employees now<br />
firmly in his corner and Abboud in charge of the<br />
product, hMX was on solid footing once again.<br />
“There’s nothing that we make that anyone has<br />
to buy,” Williams said. “so we have to evoke emotion<br />
and make people want to be part of the club we have.”<br />
Responding to questions from the audience, Williams<br />
said that although hickey freeman operates four stores,<br />
these are viewed mainly as “laboratories” to test new offerings<br />
and should not be viewed as <strong>com</strong>petitors to the <strong>com</strong>pany’s<br />
retail accounts. And asked about the Palm Beach label,<br />
which also has a rich history, Williams said the <strong>com</strong>pany<br />
shut it down but plans to reintroduce it as a luxury collection<br />
focusing on its strength in such staples as seersucker<br />
and khaki. “It’s a great name and a global opportunity,”<br />
Abboud said.<br />
Josh Rosen<br />
Saturdays Surf<br />
Carves Stylish<br />
Niche in Surf<br />
Retailing<br />
by DAvID LIPKE<br />
oPENING A sMALL surf shop<br />
on a cobblestoned street in New<br />
York’s soho neighborhood in<br />
the midst of a recession may not<br />
sound like the most sure-fire<br />
business proposition. But since<br />
its debut on Crosby street in 2009,<br />
saturdays surf has created a stylish<br />
niche for itself in an industry<br />
dominated by big players like<br />
Quiksilver, Billabong and vol<strong>com</strong>.<br />
“It’s a weird thing, I admit<br />
it,” said Josh Rosen, who opened<br />
the shop with partners Morgan<br />
Collett and Colin Tunstall following<br />
a stint as a showroom<br />
rep for brands like Nudie and<br />
J. Lindeberg. “But we thought<br />
there was this missing piece of<br />
the puzzle in the surf industry. We live and<br />
we breathe surfing, spend countless hours<br />
going back and forth between the city and the<br />
beach, and we didn’t have a surf shop that we<br />
could call home. We also didn’t wear surf apparel<br />
brands — we identified more with New<br />
York brands, with a more modern feel.”<br />
The shop sells surf boards and gear, wet<br />
suits from Patagonia and accessories from<br />
Dakine, as well as fashion items like Levi’s<br />
vintage Clothing jeans and Gitman shirts.<br />
There’s a saturdays surf line that started<br />
with T-shirts but has expanded to woven<br />
shirts, chinos, shorts, sweatshirts, pullovers<br />
and outerwear — as well as collaborations<br />
with <strong>com</strong>panies like bag maker Porter and<br />
grooming brand Baxter of California.<br />
After opening the brick-and-motor<br />
shop, Rosen and his partners leveraged the<br />
Internet and social media to build the business<br />
beyond those four walls. The <strong>com</strong>pany<br />
operates a blog, facebook page, Twitter account,<br />
videos on YouTube and a just-launched<br />
e-<strong>com</strong>merce site to burnish the brand and<br />
grow sales. one video of Collett making his<br />
way to Rockaway Beach from the shop, via<br />
skateboard and subway, has garnered more<br />
than 400,000 views.<br />
“It can be deceiving when you walk into<br />
our shop on a rainy Monday morning and<br />
there’s nobody in the store,” said Rosen. “It’s<br />
what you don’t see, it’s what’s in the back —<br />
on the blog and Web site — that’s really allowing<br />
us to take this business to the next level.”<br />
The foundation for the business, however,<br />
remains the original soho store, stressed<br />
Rosen. “None of this would have <strong>com</strong>e if it<br />
weren’t for the shop. The Web would not be<br />
successful without the store. People have<br />
to <strong>com</strong>e in and touch and feel. A lot of the<br />
original content for the Web <strong>com</strong>es out of the<br />
store,” he explained.<br />
The store has be<strong>com</strong>e a hub for surf fans<br />
and hipsters in general to congregate and<br />
hang out, thanks to a coffee bar and a backyard<br />
that are part of the space. “The coffee<br />
shop in front is a way to invite people into<br />
our world. We have people who <strong>com</strong>e in the<br />
middle of the day and we see them until we<br />
close,” related Rosen.<br />
Up next for the <strong>com</strong>pany is its first shopin-shop,<br />
which will open in two weeks inside<br />
the Adam and Rope department store in<br />
Tokyo. “Japan makes sense because they love<br />
culture and New York,” said Rosen, adding<br />
another pop-up shop will likely open on Long<br />
Island when the AsP World Tour <strong>com</strong>es to<br />
Long Beach in september.<br />
photos by thomas iannaccone