The retail chain Fashion Bug said here it had signed a licensing deal to be the exclusive retailer of Gitano brand clothing.
Gitano is part of Greensboro-based VF Corp.’s Wrangler business.
Fashion Bug is one of four apparel store chains owned by Charming Shoppes Inc., a Bensalem, Pa.,-based company. Charming Shoppes announced the Gitano deal with its first-quarter results Thursday morning.
The company said Gitano products would start arriving at stores during the third quarter.
I will never understand, how a brand can put all eggs into one basket. Direct to retail (DTR) licenses have been growing in popularity over the last couple of years. But what does the brand owner do, when the retailer drops the license?
To us, DTR decreases the value of the brand, as it puts future income at risk.