Genesco Puts Lids Up for Sale

Genesco Inc., under pressure from shareholders, is putting its mall-based hat seller Lids Inc. up for sale. The decision to sell Lids, which Genesco acquired in 2004, is in “the best interest of the company and shareholders” as it sharpens focus on its shoe business, which includes Johnson & Murphy and other brands, the company said. Lids had 1,240 stores as of Jan. 31, 2017 and annual sales of $847.1 million, down 13.1% from a year earlier. Lids posted a 14% decline in sales during the recent holiday season as revenue from sales of MLB-licensed products declined and “well publicized challenges” facing the National Football League (MFL) dampened demand for NFL licensed merchandise, CEO Robert Dennis told analysts. Genesco has been paring back its business in recent years, having sold Lids Team Sports, which marketed athletic apparel to schools and youth programs, to BSN Sports in 2016. Genesco has been under pressure from shareholder Legion Partners Asset Management and 4010 Capital, which purchased a stake in the company in January.

Contact:

Genesco Inc., Robert Dennis, CEO, 615-367-7000

WowWee Group Signs Several Fingerlings Licensing Deals

WowWee Group signed licensing deals for its hit Fingerlings toy brand in launching its first outbound program. AllStar Vending, Bioworld, Cardinal, Commonwealth Toys, Innovative Designs, Super Impulse and Tara Toy signed agreements with the bulk of the products slated hit retail in the fall. The items will be sold through a broad range of distribution channels, many of whom already carry Fingerlings, monkey-like figures that attach to a finger and have a built-in microphone and touch and motion sensors. The toys were a top-seller during the recent holiday season and licensing the brand is part of WowWee’s effort to broaden its business (Inside Licensing June 26). Striker Entertainment represents the Fingerlings brand.

Contacts:

WowWee Group, Adam Fairless, Chief Development Officer/Head of Licensing, 958-729-6580, adam@wowwee.com

Striker Entertainment, Marc Mostman, Partner,  818-225-9355, marc@strikerent.com

Basic Fun! Acquiring K’Nex

Basic Fun! is acquiring K’Nex in deal that adds a contruction toy brand to its portfolio. K’Nex, which has Hasbro licenses for Lincoln Logs and Tinker Toys, will expand Basic Fun’s portfolio that also includes a license from Mattel for several classic Fisher Price toys. Terms of the sale weren’t disclosed, but K’Nex will keep its offices and manufacturing plant in Hatfield, PA, Basic Fun said.  Basic Fun, which renamed itself from The Bridge Direct last fall after a merger with Tech 4 Toys, has said it plans to acquire companies every 6-18 months. Prior to K’Nex, Basic Fun purchased Uncle Milton last May and invested in Oyo Toys.

Contacts:

Basic Fun!, Jay Foreman, CEO, 561-997-8901, jay.foreman@basicfun.com

Sesame Street Launches Retail DTRs

Sesame Workshop struck DTRs with three retailers as it moves to promote its 50th anniversary. Zara (five SKUs in handbags, shoes backpacks), Drake General Store (12 apparel SKUs) and Land of Nod (200 SKUs of playroom furniture, bedding, apparel and other products) are each fielding DTRs. Licensee Bioworld also is readying apparel for spring that will be sold through BoxLunch, Urban Outfitters and Spencer Gifts.

Contact:

Sesame Workshop, Gabriela Arenas, VP Licensing North America, 212-875-6634, gabriela.arenas@sesame.org
Daphne’s California Greek Launching Salads, Gyro Kits at Costco

Daphne’s California Greek will launch Greek salad and gyro kits at Costco this summer as the restaurant chain enters food licensing for the first time, says Coastal Limited’s Paul Leonhardt, whose agency represents the brand. Organic food supplier and licensee Grain & Simple will assemble the meals’ ingredients into kits and distribute them to Costco, which will carry them chainwide, says Leonhardt. Daphne’s Greek Café was renamed Daphne’s California Greek after emerging from bankruptcy protection in 2011 and is embarking on a franchise program to expand its reach beyond California and Arizona.

Contact:

Coastal Limited, Paul Leonhardt, Pres., 619-518-5808, paul@coastallimited.com

Jelly Belly Getting into Bubble Business

Candymaker Jelly Belly is getting into the bubble business. Little Kids Inc. is launching the Jelly Belly Bubble Machine Assortment that produces jelly bean bubbles including those with “very cherry,” “berry cherry” and “green apple” scents. The assortment includes a two-ounce bottle of scented bubble solution and jelly bean stickers.

Contact:

Little Kids Inc., Jim Engle, CEO, 401-454-7600,

Jelly Belly, Randy Swaigen, VP Global Marketing, 707-399-2786, rswaigen@jellybelly.com

Debenhams Cutting 320 Management Positions

UK Department store chain Debenhams is cutting 320 jobs as it restructures store management, the company said. The retailer, which operates 178 stores in the UK and Ireland, is trimming positions as it moves generate $13.9 million in cost savings this year. Debenhams’ move follows similar restructuring in the UK at Morrisons, Sainsbury’s and Tesco.

Contact:

Debenhams, Sergio Bucher, CEO, +44 843 557 3408