Morgan Stanley predicts that, by 2020, activewear will represent $83 billion in sales
July 21, 2016 – Bahamas Development Corporation (OTC: BDCI) has executed a Letter of Intent (LOI) to acquire a wholesale turnkey Performance Lifestyle Apparel company with existing operations and distribution channels. The target company has a multi-year operating history, and currently has several hundred thousand dollars of revenue with a profit margin of 49%.
The business specializes in wholesale and retail sportswear for women. The target Company sells its own trademark brand whose quality is comparable to or better than other famous brands with higher price points. The Company has continuous innovation of new designs to generate repeat purchases, with a focus in online events and flash sales. The business has clients throughout the US who are revenue producing. The subscription service model ensures that 100% of clients generate repeat business.
The rise in athleisure has given apparel sales a significant boost in the last couple of years. In 2014, US consumers spent $323 billion on apparel, footwear and accessories, according to The NPD Group. This was a $2 billion increase from the prior year, and largely thanks to dramatic growth in sales of activewear. Morgan Stanley predicts that, by 2020, activewear will represent $83 billion in sales, “stealing market share from non-athletic apparel.” According to Stylus, “The athleisure phenomenon looks set to continue into 2016 and beyond, and is now on course to become one of the fastest-growing global apparel product categories in the second half of this decade.”
Pursuant to the terms, the buyer will purchase 100% of all classes of stock of the seller, all trademarks, all assets, and all current and future business operations of the Seller.
Bahamas Development Corporation is also in the process of performing due diligence on several companies in the apparel industry with combined revenues that exceed $5 million annually, and which manufacture and sell their own apparel lines. Profile distribution channels are resorts, surf shops, online, and international sales. By relocating all manufacturing to the Bahamas the Company can save on labor costs driving profits up significantly.
In other news:
Kstv Holdings Co. received approval on Friday July 15, 2016 to change its name and ticker to Bahamas Development Corporation, ticker (“BDCI”).
Bahamas Development Corporation, in compliance with SEC regulations, may in the future use social media outlets like Facebook or Twitter and its own website to announce key information in compliance with Reg FD.
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