Spy Optic parent Orange 21 announced that it is getting out of the manufacturing business almost entirely—something it had formerly touted as one of its advantages.
According to an announcement today Orange 21 is selling 90% of its Italy-based manufacturing facility LEM to the eyewear companies senior management.
A. Stone Douglass, Orange 21 Inc.’s CEO, commented, “We believe this is an opportunity for us to refocus our primary efforts on our sales and distribution of our multiple brands, Spy Optic, O’Neil, Margaritaville and Melodies by MJB through our remaining wholly-owned subsidiaries, Orange 21 North America Inc. and Orange 21 Europe S.r.l.”
Follow the jump for the entire release.
CARLSBAD, CA — 12/22/10 — Orange 21 Inc. (OTCBB: ORNG) announced today that on December 16, 2010, the Company entered into an agreement to sell 90% of the capital stock of its wholly-owned manufacturing subsidiary, LEM, S.r.l. (“LEM”), to LEM’s senior management and two of its outside suppliers for EUR 15,000. The sale will be effective on December 31, 2010. The Company will continue to hold a 10% interest in Lem following the sale and will continue to purchase eyewear from LEM.
The agreement provides that the Company will purchase a minimum amount of certain goods or services from Lem during fiscal years 2011 and 2012, subject to the continued employment of Messrs. Lodigiani and Marcassa by Lem. The minimum purchase amounts for fiscal 2011 and 2012 are at least EUR 3,717,617 and EUR 1,858,808, respectively.
A. Stone Douglass, Orange 21 Inc.’s CEO, commented, “We believe this is an opportunity for us to refocus our primary efforts on our sales and distribution of our multiple brands, Spy Optic, O’Neil, Margaritaville and Melodies by MJB through our remaining wholly-owned subsidiaries, Orange 21 North America Inc. and Orange 21 Europe S.r.l.”
About Orange 21 Inc.
Orange 21 designs, develops, markets and produces premium products for the action sports, motorsports, snowsports and lifestyle markets under the brands Spy Optic, O’Neil, Margaritaville and Melodies by MJB.
Hmmm…. Well, they bought LEM for WAAAAAaaaay more sums of investor cash… Think of the Rossi deal with Quik, which is very similar in the sense of massive losses. They always say, buy an Italian factory, inherit a culture.
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