Kellwood Corp., the Town and Country-based apparel company, is in an aggressive growth mode and could potentially double its size in the next 6 to 9 months, Michael Kramer, the company's chief executive said Thursday after it completed an acquisition.
The company announced it bought Adam, a six-year-old contemporary sportswear line founded by Adam Lippes that is sold at luxury retailers such as Bergdorf Goodman, Neiman Marcus, and Harrods.
"Adam is the first one we've nailed," Kramer said. "Hopefully this is the first of many to come."
Kellwood has looked at 40 to 50 brands in the last four months, he said. It is focusing on looking for contemporary brands in the upper- to moderate-price levels in both men's and women's fashions.
"Your ability to control your destiny is much higher in the upper price points," he added.
Kellwood, which is privately held, declined to disclose its current sales. Last year, The Wall Street Journal reported Kellwood's annual sales to be around $800 million.
Kramer wouldn't comment about the company's recent split with St. Louis native Kimora Lee Simmons, the fashion and beauty mogul who was president and creative director of Phat Fashions, a subsidiary of Kellwood.
Simmons, a prolific Twitter user, began talking about the breakup through tweets last week. She said they were parting ways as of Sept. 1.
When asked by one of her followers if she quit, she wrote: "No I did not quit. But it is over!" In another, she wrote that Kellwood "took over."
"Sometimes we have limited choices in life. We have 2 RIDE the WAVE baby! Team Fabulosity," she wrote in another colorful tweet.
Simmons couldn't be reached for comment.
Kellwood bought Phat Fashions, which includes Baby Phat, for $140 million in 2004 when hip-hop mogul Russell Simmons was looking for a retail partner. Russell Simmons parted ways with the company in 2007.
"Baby Phat is still a large, significant brand," Kramer said. "It is a brand that we're very proud of and that we'll continue to invest in. We're very excited about the future of Baby Phat."
As for Kellwood's other expansion plans, Kramer said it has been driven in part through the company's consolidation of its back-end services for all of its brands into one centralized place.
"We think we can grow significantly without adding too much to our cost structure," he said.
He said Kellwood is considering companies that are doing anywhere from $5 million to $250 million annually in their wholesale business. The Adam line is in the $20 million range, he said.
"We're looking for brands that we think have some mass appeal," he said. "Not every designer can appeal to the masses. There are a lot of $5 million brands out there. Are all of them going to be $100 million brands? Obviously not."
Kellwood can help those brands grow through its e-commerce channels and retail store platforms, he said.
Kellwood did not disclose terms of the Adam acquisition. Lippes, 36, will continue as the creative director and chief executive. The former global director for Oscar de la Renta, Lippes launched his own line of cotton basics in 2004 under the label adampluseve, which is now known as just Adam.
In January, Kellwood acquired Isis, a women's outdoor apparel company that sells its clothes mostly through outdoor retailers such as REI and the Alpine Shop.
Kellwood, which is owned by the private equity firm Sun Capital Partners, has about 1,300 employees at its various offices.
In March, Kellwood put its Town and Country headquarters, where about 150 employees work, up for sale. The company said it was looking for another location in St. Louis County.
Kramer said Thursday that the building is still for sale, but that moving has not been as much of a priority as Kellwood has focused more of its attention recently on new acquisitions.
