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Pillowtex Brands Get New Lives

Following the liquidation of most of Pillowtex Corp.'s assets earlier this year, the former home fashions textiles manufacturer's brand names will soon resurface. Group 3 Design Corp., New York City, manages the Royal Velvet®, Cannon® and Cannon Royal Family® brands for Official Pillowtex LLC, formerly GGST LLC - a consortium of companies that acquired the bulk of Pillowtex's assets after it closed its doors last year. Earthbound LLC, New York City, manages the Fieldcrest® and Charisma® brands.

Group 3 has granted global sourcing giant Li & Fung, Hong Kong, global licensing rights to the Royal Velvet brand for a range of bedding, bath, kitchen and table products and accessories. Scottsboro, Ala.-based area rug manufacturer Maples Industries has been licensed to produce Royal Velvet area rugs, including an initial line of tufted, washable bath rugs to complement a line of bath towels sourced by Li & Fung. The brand will launch in early 2005 at Kohls stores across the United States.

Li & Fung is in the final stages of negotiations to license the Cannon and Cannon Royal Family brands for a full range of home fashions textiles and accessories. Rick Darling, president, Li& Fung USA, said the products will be sourced globally and are expected to launch in late 2005 and early 2006 in the United States, Canada, Europe and Asia.

Earlier this year, mass retailer Target Stores, Minneapolis, received a license to be the exclusive retailer of the Fieldcrest brand, which will appear on traditional bed and bath products in early 2005.

October 2004