Innovo Group to double sewing capacity
SPRINGFIELD, Tenn.--(BUSINESS WIRE)--Oct. 18, 1996--Innovo Group Inc. (NASDAQ symbol: INNO), the
manufacturer and marketer of a broad line of fashion, utility, and licensed products, today announced that it has
successfully arranged a low-cost 36 month lease for a fully-equipped sewing facility in Red Boiling Springs, Tenn.,
approximately doubling the sewing capacity of its Tennessee operations.
The company expects to begin operating in the new facility in November, 1996.
Patricia Anderson-Lasko, Innovo's president and chief executive officer, was enthusiastic about the addition of this
facility: "The Red Boiling Springs plant, which has a large unemployed sewing labor pool, will help the company
eliminate recent labor shortages that have limited sales." Last month Innovo announced that, although it would report
an approximate 44 percent increase in sales through the end of its third quarter, labor shortages at both its Tennessee
facility and the Georgia facilities of its Thimble Square subsidiary had limited production operations and the orders it
could accept.
Innovo's president also explained that the capacity shortage in Tennessee, which had forced the company to use
Thimble Square operations to produce Innovo's craft and bag products, had decreased the development of Thimble
Square's new ladies line and Innovo's licensed t-shirt products. Anderson-Lasko added, "This new Tennessee
facility will not only help solve our capacity shortage at Innovo, but will also free up the Thimble Square factories so
we can begin updating the company's line of ladies at-home lounge and sleep wear." Anderson-Lasko also stated
that the annual rental for the new factory would have no noticeable effect on operating expenses, and the the company
was continuing to look for an additional new plant to bring on-line in time to meet projected January, 1997 orders.
Innovo Group manufactures and markets a wide range of fashion, utility, and sports-designed tote, laundry and duffle
bags, lunch bags, fanny packs, aprons and other nylon and canvas products, as well as sports-licensed bags,
backpacks and licensed t-shirts. The company's fashion lines are based on its own designs, while the sports lines
feature both company designs and the logos of NFL, MLB, NHL, NBA, and college teams. Innovo is also a licensee of
and supplier to the U.S. Olympic Teams and hold licenses from Anheuser Busch Cos. and Warner Bros. Innovo's
Thimble Square subsidiary manufactures and distributes a ladies' ready-to-wear at home, sleep and lounge wear
from plants in Georgia.
CONTACT: Innovo Group Inc., Springfield
Kirk Miller, 615/384-0100, ext. 464 |
