Gildan Responds to Lawsuit Filed by Russell Brands Affiliate of Fruit of the Loom
Gildan Activewear Inc. is issuing a press release to explain the events which have given rise to a lawsuit filed on Oct. 12, 2012 by Russell Brands LLC, an affiliate of Fruit of the Loom, alleging trademark infringement and unfair competition.
In line with its strategy to further develop its presence as a supplier of branded products to U.S. retailers, the company has recently been successful in obtaining several new programs. One such program obtained by the company is a program to supply all of the men's and boys' fleece business for a retail customer, which was previously supplied by Russell Brands under its Jerzees label. This program is now being supplied under the Gildan Smart Basics label.
As part of the terms of obtaining this program, Gildan was required to purchase a small amount of Jerzees inventory from the retailer.
Gildan management subsequently became aware that a portion of the Jerzees inventory which it had purchased had been shipped to the retail customer bearing Gildan brand identification. Gildan took immediate steps to correct the situation by seeking to retrieve all of the Jerzees product which had been shipped to the retailer from the customer’s retail outlets and distribution centers. Gildan is confident that the amount of Jerzees product under dispute is negligible, and estimates that approximately $100,000 of disputed Jerzees products have been sold to consumers.
The company currently is conducting an internal review of the events and internal controls relative to this matter. Although the dollar amounts involved in the dispute are not material, the company is treating this matter seriously. Gildan is proud of the quality of its products and has no wish to associate its products with those of another manufacturer or another brand.