Gitano Group Inc.
was a company that manufactured jeans. They filed for
bankruptcy protection in 1994.
History
An Israeli immigrant family the Dabahs began the business in the late 1960s, expanded with help from another such family in the early 1970s, and in 1977 added use of the Spanish word ''Gitano'' (gypsy). Marketing and funding were key; they used
Crazy Eddie
Crazy Eddie was a consumer electronics chain in the Northeastern United States. The chain was started in 1971 in Brooklyn, New York, by businessmen Eddie and Sam M. Antar, and was previously named ERS Electronics (ERS stood for Eddie, Rose and ...
's stockbroker.
[
They tried their hand at retail: by 1992 Gitano was operating 100 stores.,][ in addition to selling to
Walmart][ and running a separately managed 130-store chain, Children's Place.][ Actual manufacturing was being done in 40 countries, and some import/export laws were violated, at least twice.][ By then, rights to the ]Gloria Vanderbilt
Gloria Laura Vanderbilt (February 20, 1924 – June 17, 2019) was an American artist, author, actress, fashion designer, heiress, and socialite.
During the 1930s, she was the subject of a high-profile child custody trial in which her mother ...
name had been purchased.
Beginning early 1993 an outsider CEO
A chief executive officer (CEO), also known as a central executive officer (CEO), chief administrator officer (CAO) or just chief executive (CE), is one of a number of corporate executives charged with the management of an organization especially ...
truncated the company's staff, 3,600 staff at its high point, to 150 employees, and likewise some of Gitano's debt.[ ]Fruit of the Loom
Fruit of the Loom is an American company that manufactures clothing, particularly casual wear and underwear. The company's world headquarters is in Bowling Green, Kentucky. Since 2002 it has been a subsidiary of Berkshire Hathaway.
Products manu ...
bought the firm, but for less than Gitano's outstanding debt.[ By then, more than a year had passed since the founding family had filed for bankruptcy.
Marketing had been an important part of their operation, and it was important to the industry and the era. One competitor headlined
]We Believe People Should be Price Conscious.
They Should Remain Conscious After They See The Price.
Looking back after Gitano's downfall, '' The New York Times'' described them as "once the largest manufacturer in the United States of moderately priced women's jeans."[
]
References
Companies based in New York City
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