Saks isn't the only New York store that got a new owner this week. In a surprise move, sportswear chain American Apparel has purchased the New York boutique mini-chain OAK including both of its stores, its online e-commerce site and its wholesale business. This is the first time that chain has acquired another retailer, which it plans to continue operating separately from the main chain under its founders Louis Terline and Jeff Madalena. “This is their division. They are being empowered to grow their business,” AA Chairman and CEO Dov Charney tells WWD. The pair will also offer creative input for the American Apparel chain. Oak currently operates two stores, one in on Bond Street in NoHo and another on Nassau Avenue in Greenpoint, Brooklyn. Compared to its new owner's affordable basic sportswear, it operates in an entirely different category offering much more exclusive, directional and expensive merchandise in the contemporary price range. The new deal will allow Oak to expand both overseas and in the U.S. with potential possibilities including Seoul, South Korea where AA has available space, and Los Angeles where its new parent company is headquartered and the brand's spare, modern fashion sensibility would have natural appeal. In addition, the stores will be able to take advantage of more sophisticated back office and e-commerce systems as well as in-house manufacturing capabilities for its wholesale collection, so faithful customers here in New York can expect to see a stronger and possibly bigger Oak in the coming months.
American Apparel Purchases N.Y. Specialty Retailer Oak (WWD)
OAK (Official Site)