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- Firm builds infrastructure of knitwear supplier after folding operation into new corporation
CITY OF COMMERCE, Calif.(1/3/06)—Indosheen, Inc., a fast growing provider of knitwear design and sourcing services to the apparel trade, is being positioned for additional expansion by Buxbaum Group, the Calabasas, Calif.-based turnaround investor.
Buxbaum’s move to build Indosheen’s infrastructure follows the acquisition of the knitwear company’s assets by Maya, Inc., a new corporation. Buxbaum Group has a controlling interest in Maya, which will do business under the Indosheen trade name. David Gren, founder of Indosheen, will continue as a partner in the business and as president to direct the entity’s day-to-day operations.
“Indosheen’s sales were expanding at a dizzying pace,” said David Ellis, president of Buxbaum Group, which is based in Calabasas, Calif. “However, the company wasn’t structured to accommodate that rate of growth.”
The City of Commerce-based Indosheen’s infrastructure was more appropriate for a $15-million company than the $25-million operation it had become, Ellis explained. Consequently, it was becoming increasingly difficult to track orders or maintain a high level of customer confidence.
“To take the company to the next level,” said Buxbaum Group chairman and CEO Paul Buxbaum, “we infused Maya with capital, hired additional customer service personnel, and dramatically changed the operations and production procedures of the business.” Those changes include the acquisition of production facilities in Central America.
According to Ellis, Maya’s volume will be capped at about $25 million while its infrastructure is brought up to speed. He predicted that annual sales should reach the $50 million to $60 million range within three years.
About Buxbaum Group - Buxbaum Group has built its reputation for over 30 years as one of the largest liquidators and appraisers of retail and wholesale inventories, as well as machinery and industrial equipment, across North America. While continuing to operate in those areas, the company has shifted its primary focus in recent years to turnaround investing along with specialty financing. Additionally, a subsidiary, Pathway Strategic Partners, provides turnaround, expansion and/or downsizing strategies, in conjunction with other advisory consulting and management services.
Press Contacts: At Buxbaum Group, Paul Buxbaum, (800) 990-6820; at Parness & Associates Public Relations, Lisa Kreda or Bill Parness, (732) 290-0121.
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