Dunbrooke Signs Partnership With Eagle Dry Goods
Feb. 24, 2011
Beginning March 1, Dunbrooke
Apparel Corp. (asi/50930) will sell, market, distribute and warehouse the Eagle
Dry Goods' (asi/51231) namesake brand and the Tommy Bahama
line in the ad specialty industry, the suppliers announced this week.
"This is part of our long-term strategy to expand from a single-label
jacket supplier to a multi-line supplier that serves a whole range of
customers," said Matt Gray, COO of Dunbrooke, in an interview with Counselor.
Financial terms of the deal were not released. Scott McFadden,
executive vice president of Eagle Dry Goods, said the strategic alliance
provides the Eagle Dry Goods and Tommy Bahama brands
the chance to reach more customers through Dunbrooke's
sales network. "We believe it's better for us, better for Dunbrooke and better for distributors to have one-stop
shopping," said McFadden, who noted ownership of Eagle Dry Goods will
Dunbrooke, whose roster of labels
includes Reebok, Calvin Klein, Van Heusen and the NHL
and NFL, will run operations for the Eagle Dry Goods and Tommy Bahama lines out of its Missouri
location. Over the next three months, assets and inventory will be transferred
from Eagle Dry Goods' Tennessee
facility to Missouri, said Gray.
Twelve to 15 current Eagle Dry Goods sales representatives will lose their jobs
as a result of the transaction, but Dunbrooke expects
to add five to 10 new jobs, including two sales positions, to support the
Eagle Dry Goods plans to incorporate other employees of the
company into an unrelated retail venture and are not shuttering the Tennessee
facility, McFadden told Counselor. For the next several years, McFadden and
Eagle Dry Goods' President Bill Reese will serve as consultants to Dunbrooke on the Tommy Bahama and
Eagle Dry Goods lines, Gray said.
Although Gray declined to discuss specifics, he said that Dunbrooke is currently exploring more ways to expand its
brand offerings and another deal could be announced by the fourth quarter of