Tarrant Apparel Group said Tuesday it has settled litigation with American Rag Cie LLC related to its license to sell American Rag apparel at Macy's.
A Los Angeles-based Tarrant's subsidiary, Private Brands, sells American Rag Cie branded clothing to Macy's Merchandising Group. The American Rag Cie trademark has been licensed exclusively to Private Brands across the world except for Japan.
The two companies agreed to extend the license agreement to Sept. 30, 2018, but with a reduced territory limited to the United States, Canada, Mexico and Bermuda. The annual guaranteed minimum royalties were reduced and royalty rates were changed.
Tarrant, a design and sourcing company for private label and private brand casual apparel, said it no longer owns an equity interest in American Rag Cie LLC or American Rag Compagnie.
Tarrant shares were unchanged at 46 cents in morning trading. The company said in the same announcement that it received notification that Nasdaq will allow the company to continue listing its stock on the exchange through April 17, to give it more time to raise its bid price to the minimum $1.
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