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Tribal - California Apparel News

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It’s back to the drawing board for a plan to let Mexican<br />

trucks bring long-haul cargo into the United States.<br />

The U.S. Department of Transportation released a “concept”<br />

document on Jan. 6 that would gradually lead to the<br />

U.S. border being opened to Mexican long-haul trucks.<br />

A one-year pilot program to allow 100 Mexican trucking<br />

companies to bring in cargo beyond 20 miles from<br />

the U.S. border was launched in 2007. But it was shelved<br />

when Congress closed down the program in early 2009.<br />

Mexico than instituted a number of tariffs on $2.5 billion<br />

of U.S. exports in retaliation.<br />

The decision to allow Mexican long-haul trucks into the<br />

United States and U.S. long-haul truckers into Mexico was<br />

originally agreed upon in the North American Free Trade<br />

Agreement, which went into effect in 1994. That bilateral<br />

exchange of trucks was to be implemented by 2000. But<br />

6 CALIFORNIA APPAREL NEWS January 14–20, 2011<br />

NEWS<br />

Mexican Truckers Could Get the Green<br />

Light to Enter the United States<br />

concerns related to poor emissions in Mexican trucks and<br />

their safety delayed the program.<br />

It would help U.S. apparel companies producing garments<br />

in Mexico. Many Los Angeles blue-jeans makers<br />

do part of their production south of the border and use<br />

Mexican-made denim for their clothing.<br />

The concept program foresees that a safety audit would<br />

be conducted on each carrier’s safety-management program.<br />

Drivers’ records would be reviewed, and each vehicle<br />

would be inspected for safety and emissions. Evidence<br />

of vehicle insurance would have to be submitted to<br />

the Department of Transportation.<br />

In addition, a Mexican carrier’s vehicle and driver<br />

would have to be inspected, for an agreed-upon amount of<br />

time, every time they enter the United States.<br />

—Deborah Belgum<br />

Client<br />

loyalty?<br />

Let’s talk.<br />

I have been a CIT client for<br />

16 years. CIT provides fast online<br />

credit approvals and flexible<br />

financing that has helped my<br />

company grow. Recently, three<br />

different factors tried to get my<br />

business. I said no to all of them.”<br />

KC HuAnG, PH.D.<br />

PRESIDEnT AnD OWnER<br />

WEEKEnDz OFF<br />

" Fashion for the Casual Life "<br />

CIT is the nation’s leading factor and<br />

lender to the apparel industry.<br />

What’s the secret to our success?<br />

Deep and long-standing relationships<br />

with clients like Weekendz Off, a<br />

Los Angeles-based supplier of casual<br />

sportswear. We provide fast credit<br />

decisions, flexible financing solutions and<br />

the support that clients need to grow their<br />

businesses during all economic cycles.<br />

Want to talk about how CIT Commercial<br />

Services can begin a long-term<br />

relationship with your company?<br />

Visit us at cit.com or call 800-248-3240.<br />

Athleta Flagship<br />

Opens in S.F.<br />

© 2011 CIT Group Inc. CIT and the CIT logo are registered service marks of CIT Group Inc.<br />

Gap Inc. opened a flagship store for its Athleta division in San<br />

Francisco’s Fillmore neighborhood on Jan. 13. The 5,000-squarefoot<br />

outlet will offer clothes for a full range of sports activities such<br />

as yoga, running, golf, paddleboarding and gym workouts.<br />

Athleta started business as an online venture in 1998. Ten years<br />

later, Gap purchased the Petaluma, Calif.–based women’s athletic<br />

wear label and retailer for $150 million. Gap opened a smaller Athleta<br />

shop in Mill Valley, Calif., in 2010. However, the San Francisco<br />

Athleta store, located at 2226 Fillmore St., is considered the<br />

brand’s formal bricks-and-mortar debut.<br />

“This store opening launches the next phase of our multi-channel<br />

growth plan for the Athleta brand,” said Toby Link, president<br />

of Gap Inc. Direct, the division that handles the Athleta brand. A<br />

Gap representative said there were no plans to open more stores.<br />

“We’re going to see how customers respond to this new store,” said<br />

Gap’s Callie Canfield.<br />

Gap Inc. does not break out sales results for Athleta. However,<br />

the company recently reported<br />

that same-store sales in December<br />

declined 3 percent compared<br />

with December 2009, when Gap<br />

reported a same-store increase of<br />

2 percent.—Andrew Asch<br />

Credit Protection n Working Capital<br />

Factoring n Import/Export Financing<br />

Debt Restructuring n Growth Financing<br />

Anchor Blue<br />

to Liquidate<br />

117 Stores<br />

Anchor Blue announced it<br />

would be shuttering all 117 of its<br />

stores following news that the company<br />

was declaring bankruptcy.<br />

Liquidation sales started<br />

Jan. 7 and will continue until all<br />

merchandise is gone. Gordon<br />

Brothers Group and Hilco Merchant<br />

Resources, both finance and<br />

liquidation specialists companies,<br />

announced Jan. 14 they will be<br />

handling the going-out-of-business<br />

sales for the Corona, Calif.–based<br />

retailer’s stores, with 84 located in<br />

<strong>California</strong>.<br />

All store merchandise will be<br />

marked down 40 percent to 60 percent.<br />

The stores’ fixtures also will<br />

be sold. Anchor Blue store sales<br />

will run as long as necessary, but<br />

liquidators listed Jan. 21 as a tentative<br />

deadline. Anchor Blue will<br />

honor gift cards and returns until<br />

Jan. 21.<br />

<strong>News</strong> of the retailer’s demise<br />

trickled through the grapevine a<br />

few weeks ago. Employees started<br />

posting comments on the company’s<br />

Facebook page, and on Jan. 4<br />

they received word through e-mails<br />

and a conference call that the end<br />

was near.<br />

The company had a long heritage<br />

in <strong>California</strong>. It started business in<br />

the mid-1970s as Miller’s Surplus<br />

and then Miller’s Outpost.<br />

In 1981, the company created its<br />

own brand, Anchor Blue. In 2009<br />

it declared Chapter 11 bankruptcy<br />

and later emerged from bankruptcy<br />

that year, with private-investment<br />

firm Sun Capital Partners being<br />

the principal owner.<br />

Thomas Sands, Anchor Blue’s<br />

then-chief executive, blamed the<br />

bankruptcy on the poor economy.<br />

“The unprecedented downturn and a<br />

related drop in consumer spending,<br />

especially in the teen-age market,<br />

had a severe impact on our financial<br />

performance,” he said in a company<br />

statement.—A.A.

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