US: Buxbaum positions Indosheen for growth
Fast-growing knitwear supplier Indosheen is being positioned for future expansion by Buxbaum Group, the turnaround investor.
Buxbaum's moves to buid Indosheen's infrastructure follow the acquisition of the knitwear company's assets by Maya, a new corporation. Buxbaum has a controlling interest in Maya, which will do business under the Indosheen trade name.
Indosheen's founder David Gren will continue as a partner in the business and as president to direct the entity's day-to-day operations.
Buxbaum president David Ellis said: "Indosheen's sales were expanding at a dizzying pace. However, the company wasn't structured to accommodate that rate of growth."
He added that Indosheen's infrastructure was more appropriate for a US$15-million company than the $25-million operation it had become. Tracking of orders and maintaining a high level of consumer confidence had become increasingly difficult, Ellis said.
Buxbaum chairman and chief executive Paul Buxbaum continued: "To take the company to the next level we infused Maya with capital, hired additional customer service personnel, and dramatically changed the operations and production procedures of the business."
The changes included alterations to the operations and production procedures of the business, such as the acquisition of production facilities in Central America.
According to Ellis, Maya's volume will be capped at about $25m while its infrastructure is brought up to speed.
He predicted that annual sales should reach the $50m to $60m range within three years.
Indosheen provides knitwear design and sourcing services to the apparel trade.
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