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Months after filing for bankruptcy, new ownership revives Lundstrom brand
(Canadian Press (delayed) Via Thomson Dialog NewsEdge) TORONTO _ Just two months after filing for bankruptcy protection, Linda Lundstrom and her brand are back in business.
Eleventh Floor Apparel Ltd. announced Wednesday that it has purchased the rights to the Canadian designer's name, assets and manufacturing plant of her former company, Linda Lundstrom Inc. (LLI).
Lundstrom, creator of the iconic Laparka coat, will remain on board as chief creative officer, focusing solely on designing seasonal collections under the new management structure.
Karen Spisak, vice-president of brand development with Eleventh Floor Apparel Ltd., said in a statement that the company is excited to be working with ``a true talent in the Canadian fashion world'' like Lundstrom.
``The Lundstrom brand is synonymous with beautiful clothing, inspirational stories and real women dressing for real life,'' Spisak said.
``Linda's designs for the upcoming season are stunning _ her best ever _ and we are thrilled to be able to bring this collection to her loyal retailers and customers in North American and European markets _ albeit fashionably late!''
While Lundstrom's three brand stores in Toronto and Niagara Falls, Ont., have closed their doors, most of the company's former retailers in Canada and the U.S. will continue to carry the collections.
``With the closing of my business, I hoped for a miracle that would allow me and my team to continue to work together, doing what we love,'' Lundstrom said in a statement.
``This partnership is truly a gift because, as opposed to other offers to license my name and manufacture offshore, Eleventh Floor Apparel Ltd. values what my brand stands for and what I represent as a designer.''
``Under their business guidance, my creativity will flourish and my designs will benefit from being able to concentrate on what I do best _ making women look and feel beautiful.''
Lundstrom's company, which was launched in 1974, garnered acclaim with its signature Laparka wool coats.
By the end of 2006, she had produced 150,000 of the garments in more than 130 different colours in collaboration with First Nations artists.
The company reached its peak in 1997 with $12.2 million in manufacturing sales topped off by $2 million to $3 million from corporately owned retail stores.
In late January, Lundstrom filed for bankruptcy citing significant business reversals in 2007, compounded by the high loonie and other factors in the retail environment.
Financial terms of the acquisition were not disclosed.
Copyright ? 2008 The Canadian Press
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