City of Commerce, Calif.-based Maya
Apparel Group Inc., which acquired knitwear designer and apparel sourcer Indosheen’s assets last
year and now does business under the Indosheen name, has bought and begun renovating a
170,000-square-foot manufacturing facility in Honduras.
Calabasas, Calif.-based Buxbaum Group, which has a controlling interest in Maya Apparel,
expects the facility to produce 300,000 to 700,000 units a month once it is completely on-line.
Maya will contract additional volume to other Honduran plants. The renovation will add special
services, incentive programs, and amenities such as air conditioning and an on-site medical
facility for the plant’s 400 employees. A group of local professionals will oversee quality control
at Maya’s facility and the contract plants, and will coordinate international shipping as well as
potential changes resulting from international commerce laws.
“Ownership of this facility will allow us to gain a greater degree of control over
production in order to ensure on-time delivery, as well as provide a level of quality that will
meet the most stringent criteria, including those of major retailers like Target, Wal-Mart and
Federated Department Stores,” said David Gren, president, Maya Apparel.
Additionally, the plant purchase and renovation are part of Buxbaum Group’s planned
turnaround of Indosheen, which previously had a structure that was not capable of handling the
manufacturer’s rapid growth, according to Gren.
“To take the company to the next level, we infused Maya with capital, hired additional
customer service personnel, and dramatically changed the operations and production procedures of
the business,” said Paul Buxbaum, chairman and CEO, Buxbaum Group.
“Until Indosheen’s infrastructure can be built, annual sales volume will be capped at
approximately $25 million,” Gren added. “After that, growth will proceed at a measured pace, with
sales expected to reach the $50 million to $60 million range in about three years.”
May 23, 2006