News

Marine apparel brand Salt Life, formerly a top-performing asset of Delta Apparel (PPAI 188431, Gold) – the No. 69 supplier in the PPAI 100 – belongs to new owners after a recent bankruptcy auction.

Brand licensor Iconix International and retail liquidator Hilco Merchant Resources submitted a joint bid of $38.74 million to win the business, SGB Media reported. On September 16, U.S. Bankruptcy Judge Laurie Selber Silverstein approved the bid, the Jacksonville Daily Record reported.

• FCM Saltwater Holdings had reportedly offered $28 million to buy the Salt Life brand from Delta Apparel, which hoped it would serve as a stalking horse bid – a term for the initial bid on the assets of a bankrupt company, which sets a minimum price for other potential bidders.
• However, FCM’s final bid of $37 million was bested.

Salt Life, which operates more than 20 retail stores across the United States, produced a revenue of $59 million for the fiscal year that ended September 30, 2023.

Delta Apparel’s Downward Spiral

In July, Delta Apparel filed for Chapter 11 bankruptcy, reporting more than 200 creditors.

• At the beginning of June, the Duluth, Georgia-based supplier had $337.8 million in total assets and $244.5 million in liabilities according to the filing.
• Its largest creditor is Park Mills, which is owed more than $22 million from Delta Apparel.

Tim Pubian, president of Focus Management Group, was named chief restructuring officer in May, after Delta’s board of directors pushed out CEO Robert W. Humphreys amid ongoing financial struggles.

In June, the company suspended its manufacturing operations in Honduras as it attempted to work through its liquidity challenges.

“The company’s deteriorating liquidity position and lack of funding has continued to prevent it from purchasing raw materials necessary to operate its offshore manufacturing facilities and to pay compensation and benefits due to offshore employees,” Delta Apparel said in the SEC filing at the time.

In May, the apparel maker reported that its net sales for the fiscal second quarter were $78.9 million, down nearly 40% from the same period last year.

• Net sales from its Salt Life Group retail stores segment were $15.5 million in Q2, down about 22% from Q2 2023.

In the 2023 fiscal year, which ended September 30, 2023, Delta Apparel reported a loss of $33.2 million.

Written by: John Corrigan

Published with Permission from PPAI

PPAI has announced officers for the Association’s 2025 Board of Directors.

Danny Rosin, CAS, has been named incoming chair while Zack Ottenstein will serve as vice chair, financial services.

In the positions previously known, Denise Taschereau, the Association’s 2024 chair-elect, will assume the role of chair in 2025 and current Board Chair Andrew Spellman, CAS, will serve as immediate past chair. Kara Keister, MAS, owner of distributor Social Good Promotions, will also continue in her role as Regional Relations Committee delegate.

The one-year terms will begin immediately following The PPAI Expo 2025, which will run January 13-16.

“The future of PPAI is brighter than ever with such a talented and dedicated group of individuals to lead our board’s executive committee,” Spellman says. “Their expertise and passion will be invaluable as we continue to grow and strengthen our impact.”

PPAI Board Officers’ Backgrounds

Taschereau is CEO and co-founder of Fairware, a Vancouver-based distributor that specializes in sustainable merchandise.

• She spent seven years leading the corporate social responsibility efforts of Mountain Equipment Co-op, Canada’s largest outdoor retailer, before founding Fairware.
• Taschereau is also a board member of PromoCares, a volunteer-driven group of industry members dedicated to corporate social and environmental responsibility.

Rosin, who’s currently serving his second term on the PPAI Board, is president and co-owner of Brand Fuel, PPAI 100’s No. 46 distributor.

• He also co-founded PromoKitchen, an all-volunteer organization that brings together suppliers, distributors and business service providers in order to further the education of promo pros and elevate their industry status through mentorship opportunities. 
• In 2023, Rosin was named the H. Ted Olson Humanitarian Award winner for his philanthropic efforts.
• He’s also a perennial member of PPAI Media’s #Online18.

“The opportunity to serve as chair is a privilege and a responsibility, and I look forward to serving with passion, purpose and a collaborative mindset to strengthen PPAI and the industry I believe in,” Rosin says.

Ottenstein is president of The Image Group – the No. 57 distributor in the PPAI 100.

• Since taking the helm of the Ohio-based firm in 2020, Ottenstein – a 2018 PPAI Rising Star – has led the company’s transformation into a vertical-focused marketing solutions business. 
• Prior to promo, he served as an investment analyst and director of marketing communications for Welltower, a $40 billion-plus enterprise value company.

“I’m honored to serve with such an outstanding group of directors, staff and volunteers,” Ottenstein says. “The team’s admirable financial stewardship and balance sheet management positions PPAI to continue providing outstanding services to members.”

A 30-year veteran of the promotional products industry, Spellman is currently vice president of corporate markets at Los Angeles-based supplier Therabody.

• He spent more than 14 years as vice president of sales for Victorinox, PPAI 100’s No. 93 supplier, and was senior vice president and general manager at The Magnet Group, PPAI 100’s No. 23 supplier, before joining Therabody in 2021.

PPAI Board Officers are selected by the PPAI Board Officer Nominating Committee and voted on by the PPAI Board.

Written by: John Corrigan

Published with Permission from PPAI

iPROMOTEu (PPAI 218870, Platinum) – the No. 11 distributor in the PPAI 100 – has announced the acquisition of AIA Corporation (PPAI 101364, Platinum) – the No. 18 distributor in the PPAI 100.

• Moving forward, Appleton, Wisconsin-based AIA will operate as a division of iPROMOTEu, headquartered in Wayland, Massachusetts.
• As part of the transition, both companies will continue to support their respective Affiliates and Owners, with iPROMOTEu CEO Lori Bauer overseeing the combined senior leadership team.

With combined 2023 sales exceeding $365 million, this acquisition signifies a major shift in the industry landscape and elevates the entity’s influence as a leading distributor network powerhouse, the companies say.

“AIA’s business model aligns with iPROMOTEu’s core mission of empowering distributor independence while offering a comprehensive suite of essential resources and top-tier support for their success,” Bauer says. “This strategic acquisition will enhance the market presence of both organizations and brings many competitive advantages.

“Leveraging our combined strengths will provide countless benefits for both iPROMOTEu Affiliates and AIA Owners, including accelerated advancements in technology and integrations, deeper supplier relationships, enhanced sales and marketing resources and much more. This will undoubtedly propel growth and help move the industry forward.”

AIA’s Growth

Founded in 1981, AIA has seen steady growth in recent years, with revenue of $154.6 million in 2023.

• CEO Nancy Schmidt started with the organization in 2018 and has served as its top officer since 2020.
• Schmidt will serve as an executive advisor for a period of time following the close.

“As I reflect on AIA’s transformation over the past several years, I am incredibly proud of how our commitment to our purpose and vision has guided us to this pivotal moment,” Schmidt says. “This acquisition marks the next chapter in our journey, where the value we have created for the modern distributor will be fueled with even more new opportunities, forming a truly powerful force in our industry. I’m excited about the remarkable potential this union with iPROMOTEu will bring to AIA Owners and to the industry.”

iPROMOTEu and AIA operate under similar business models and both companies are recognized for helping their distributor members grow their businesses by providing order financing, order processing support, sales and marketing tools, technology solutions and other resources.

“As we begin this new chapter, we are thrilled about the opportunities on the horizon and eagerly anticipate a future rich with innovation and success for our Affiliates and Owners,” said Bauer.

• At the end of 2023, iPROMOTEu welcomed Lori Bauer as its new CEO.
• Shortly thereafter, Bauer was appointed to the PPAI Board of Directors.

Written by: John Corrigan

Published with Permission from PPAI

Another record number of nominees have been considered, and PPAI judges have completed the difficult task of narrowing them down to 12.

This year, 220 submissions were made by promotional products pros, far surpassing the previous record of 170 set in 2023. Truly, the 2024 class emerged as the best of the best, joining almost 200 past recipients of the honor.

The 2024 PPAI Rising Stars have been selected for their achievements, leadership, volunteerism and potential for even greater impact in the years and decades to come. The same judging criteria in place since the program’s 2010 inception was used, except for the first time a true age limit was imposed. No candidates over age 40 were eligible.

The group will be in honored at PPAI’s upcoming Leadership Development Conference in North Texas, which for the second year in a row will feature an Emerging Leaders educational track designed to arm the Rising Stars and their brightest contemporaries with skills to grow in the promo industry. The Rising Stars will also be featured in the November cover story of PPAI Magazine.

Many candidates received multiple nominations, including seven of this year’s honorees. Read below to meet the new class of Rising Stars and find out why nominators say they’re deserving.

Mikas Agarwal, 19
Chief Digital Officer, Akran Marketing

“At a young age, Mikas has been very active in the promotional products industry throughout North America. [He] spearheaded a tech overhaul from a legacy system to a modern tech stack and developed and created the Akran Gift Program, passing down supplier incentives to Akran clients.”

-Mark Graham, commonsku

Alex Bradley, 35
Territory Sales Manager, Vantage Apparel

“Alex is a Rising Star through his work ethic, commitment to his customers and the industry, and his ability to follow up. He is President of GAPPP. He has grown his territory every year, participated in LEAD in 2024 and LDW in 2021, 2022 and 2023. Recently, due to his success he was awarded with an increased territory. His professionalism, hustle and ability to connect impress me.”

-Brian Deissroth, Edwards Garment

Lindsay Bons, 24
Senior Business Development Manager, IDLine

“She is constantly thinking about what’s next? This forward-thinking mentality is really how good things get done in today’s world. As we’ve all learned in our own careers, these are often difficult traits to teach or train; but we know them when we see them.”

-Christopher Duffy, Signature Group

Brittany Frase, 34
Vice President of Sales, Hirsch

“Her strategic focus on expanding the company’s national footprint through innovative marketing and sales initiatives has been pivotal in Hirsch’s growth. She has also played a crucial role in product development and establishing valuable brand partnerships, further enhancing the company’s market presence.”

-Malik Hemani, Graphic Stylus

David Geiger, 36
Vice President & General Counsel, Geiger

“Simply having your name on the building doesn’t equate to being valuable to the organization. It’s the dedication and effort that count. David Geiger exemplifies this through his commitment to the organization and its stakeholders. He consistently puts the company first, whether it’s through extensive travel to drive our ambitious M&A strategy, implementing health and wellness initiatives, or spearheading product safety efforts.”

-Stephanie Whitman, Geiger

Jason Lipsett, 34
President, Charles River Apparel

“Jason has transformed Charles River Apparel’s company culture by initiating and leading quarterly town halls and team-bonding events. These efforts have improved transparency and communication, fostering a more inclusive and engaged workplace.”

-Maria Yaitanes, Charles River Apparel

Natalie O’Leary, 38
Business Development Director, BAMKO

“She is always posting about ideas for her clients to take from, and that to me is a prime example of growing the industry. Additionally, she’s impressed me by her ability to create relationships. Our relationship started with a cold email from myself. She didn’t have to engage, but she was open to learning what I had to say and committed to being creative.”

-Ben Drysdale, Raining Rose

Brian Roney, 30
Senior Director of Product Design, Proforma

“He has brought valuable insights into professionalism, management, go-to market strategies, and enhancing Proforma’s value proposition to the industry. Some examples include overseeing the rapid rise of ecommerce during the pandemic and successfully leading our internal efforts, doubling the size of the ecommerce team, enhancing service levels by 80% and creating new industry leading features and functions of Proforma’s ProStores platforms.”

-Jordan Sura, Proforma

Anthony St. Peter, 29
President, Stellar Lanyards

“He has taken a company from one order in 2021 to what it is today in only three short years. If you look online in the promotional products Facebook groups, Anthony is always mentioned when someone needs custom lanyards. His reputation is rapidly growing as a leader in the industry.”

-Erik Walasek, Stewart Promotional Products

Shivani Thapilyal, 27
Chief of Staff, CompanyStore.io

“Over the course of the past four years, under Shivani’s leadership, CompanyStore.io has grown its team, capabilities, solutions and business to a best-in-class provider within India. She ensures that her team is equipped with the knowledge, skills and tools that are required in the modern world of sales and customer service, providing the world’s leading brands and level of service that is unsurpassed within India.”

-Eric Janssen, Staples Promotional Products

Andrew Titus, 27
President, Fully Promoted

“As a young president and the son of the CEO, Andrew faced a lot of headwinds related to preconceived notions of nepotism and doubts about his leadership capacity. However, Andrew quickly earned respect by presenting a clear vision and plan and inspiring the entire organization to execute it. He has proven to be a strong and decisive leader, well beyond his years, and has been highly instrumental in driving our success.”

-Kurt Tempelmeyer, Fully Promoted

Dominique Volker, 33
Vice President of Sales, Whitestone

“Dominique has been a star for years! She has spoken at industry events, skucamps and skucons. She was an ASI Sales Person of the Year finalist. She has helped integrate companies we’ve acquired. She has led our company from $1 million to $20 million in sales in her tenure. She is wise beyond her years, polished and experienced. She leads by example, manages with grace and has helped develop countless professionals in our industry.”

-Joseph Sommer, Whitestone

PPAI congratulates all the nominees and invites the industry to share in the celebration for the 2024 PPAI Rising Stars.

The International Longshoremen’s Association (ILA) is prepared to initiate an East Coast work stoppage at the ports that would essentially range from the Canadian border down to and including the Gulf Coast. Last week, two days of meetings from the largest longshoremen’s union on the continent ended with a unanimous vote to approve a strike beginning October 1 if their demands for a new contract aren’t met.

• The most significant sticking points for the union are wage increases and a cap on the ports’ use of automation, according to insiders.

John Janson, vice president of global supply chain for SanMar – PPAI 100’s No. 1 supplier, which accounted for nearly $4 billion in revenue in 2023 – told PPAI Media that, if a resolution isn’t reached, the ramifications will extend far beyond just the promo industry.

“It would have a catastrophic effect on the overall U.S. economy,” Janson says.

• If the affected ports were to close, it would impact 43% of U.S. imports.
• Sea Intelligence estimates the ports to account for $3.7 billion per day.

As things stand in the second week of September, the two sides don’t appear close to bridging the gap in negotiations, as the port owners, represented by the United States Maritime Alliance, suggest that the ILA is operating as though a strike is forthcoming.

“The ILA continues to strongly signal it has already made the decision to call a strike, and we hope the ILA will reopen dialogue and share its current contract demands so we can work together on a new deal, as we have done successfully for nearly 50 years,” the United States Maritime Alliance said in a statement.

Promo’s Perspective

Last year, the International Longshore and Warehouse Union (ILWU) managed to ratify a six-year contract, narrowly avoiding a similarly costly work stoppage. The West Coast ports will be open and operating at full strength in October, regardless of what happens on the other side of the country, but Janson says that its too late for any company that is just now thinking about shifting their plans for imports.

“If people wanted to move cargo to the West Coast, that already would have had to happen,” Janson says. “We’re within 30 days of this potentially coming to fruition.”

Given this precariousness, many promo suppliers – and their distributor partners – may be at the mercy of the ILA negotiations and the residual effects of a potential strike.

“It’s another major situation compounding on top of other dynamics, like continued rising container costs, the diversion of shipping around the Middle East and other logistical concerns,” says Yuhling Lu, CEO of Ariel Premium Supply, PPAI 100’s No. 17 supplier.

“The greatest impact we see on our supply chain is that suppliers will re-route containers to West Coast ports, which will greatly increase the congestion there, creating delays and almost guaranteeing higher unloading and transit costs. Plus, we’ll have to contend with possible limited availability of train and truck trailer carriers.”

While Lu maintains that Ariel has enough inventory to weather the potential logistics storm, Paul Hirsch, MAS, CEO of HIRSCH – PPAI 100’s No. 20 supplier – isn’t feeling as optimistic.

“We’ve been keeping a close eye on the possible strike and have made some proactive efforts to try and minimize disruption,” Hirsch says, “but with the news around negotiations not looking promising, we expect this to affect supply in the fourth quarter.”

Trevor Gnesin, CEO of Logomark – the No. 14 supplier in the PPAI 100 – shares Lu’s concern about congestion at West Coast ports.

“We may be [indirectly] affected because many companies will reroute and rail their goods across the country, putting additional pressure on West Coast ports,” Gnesin says.

Gemline – the No. 11 supplier in the PPAI 100 – has already adopted that strategy, according to Tim Behling, vice president of supply chain at Gemline.

 “Our proactive measures have positioned us well to navigate potential disruptions and continue providing excellent service to our customers,” Behling says.

In addition to shifting some shipments to West Coast ports, Gemline is sourcing more product domestically from select retail brand partners that carry heavy inventories and pulling forward shipments that were originally scheduled for September/October to ensure that the firm has ample inventory to meet customer needs in Q4.

“We’re moderately concerned about the potential for a strike, but we’re maintaining cautious optimism,” Behling says.

Jose Gomez, president and CEO of Edwards Garments, PPAI 100’s No. 19 supplier, says that while a port strike is a serious obstacle to the promo industry, Edwards is well-positioned for such an event.

“We have neither the highly seasonal demand nor the highly holiday-related product assortment that others in retail and promo experience,” Gomez says. “We have safety stocks in place and the diversity of our sourcing base provides multiple other entry points for our products. Therefore, we don’t believe a temporary stop or delay will have major impact on us.”

Importing the majority of its products from China, Ball Pro, PPAI 100’s No. 39 supplier, is another promo firm that relies upon West Coast ports.

“The only item that comes from East and Gulf Coast ports is our hockey pucks, and we’re working with [that factory], so it shouldn’t affect us much,” says Adam Hanson, president of Ball Pro. 

• Beyond direct and immediate impact, it is possible that the entire promo industry would be affected by the ramifications of a prolonged strike.
• Sea Intelligence suggests even just one day of work stoppage would cause 5-7 days of slowdowns, and a strike lasting one week would result in a slowdown that wouldn’t be cleared up until nearly Thanksgiving.
• The domino effect of this would have consequences for the supply chain and, ultimately, the economy, quite possibly affecting the budgets of promo clients.

What Happens Next?

Janson says that SanMar has closely monitored the situation through its sources in both the carrier and port spaces, and increased tension over the coming weeks is beginning to look likely.

“The message that we continue to hear is that it’s going to continue to get loud, but it will probably get settled close to the timeframe that it’s due, or if there is a strike, it will go no further than one or two days because the federal government will almost have to step in,” Janson says.

• The U.S. government would have an avenue to step in through what is known as the Taft-Hartley Act, which allows the government to force union workers back to work when it’s deemed sufficiently necessary for the good of the country.
• A strike would put the White House in a difficult position, as President Joe Biden has made statements and gestures during his term to appear as a union-friendly president who strongly favors letting such issues be resolved through collective bargaining.
• The Biden administration told CNBC in a statement last week, “we’ve never invoked Taft-Hartley to break a strike and are not considering doing so now.”

In a speech, ILA President Harold Daggett made clear that the union members were fully prepared to strike and that implementing the Taft-Hartley Act wouldn’t be a long-term solution to work stoppage relative to meeting the union’s demands. Janson noted that Daggett is nearing retirement and that he may be more willing to go the distance in a standoff with the ports as a symbol of toughness for his legacy.

• Along with the West Coast port labor negotiations, last year also saw UPS come precariously close to a consequential strike that was averted at nearly the last hour.
• Janson noted that, while he sees similarities between those two situations and the current scenario on the East Coast, the U.S. government was involved, at least with the West Coast port negotiations, much earlier in the process, which may have had a considerable impact on the eventual resolution.

Still, Janson says SanMar’s sources are not panicking as of this point in the process.

“We’re not seeing any of the carriers take action. They’re still sending vessels. They aren’t delaying vessels coming into ports,” Janson says. “We aren’t seeing ports take major contingency actions.

“The closer it gets the more news is going to break on it. At the end of the day, I think the sides will come together and work out an agreement.”

Written by: Jonny Auping & John Corrigan

Published with Permission from PPAI

It’s the dawning of a new era at Charles River Apparel (PPAI 111644, Gold), as PPAI 100’s No. 37 supplier has announced that Jason Lipsett has been promoted to president of the company, effective September 12.

Jason’s appointment marks three generations of Lipsetts at the helm of the New England-based firm, which his grandfather, Walter Lipsett, founded in 1983.  

“I feel a great responsibility stepping into this role and am deeply mindful of what it means for our employees, our customers and our community,” says Jason. “I’m committed to creating a work environment built around respect, teamwork and a growth mindset. Our customers know they can trust Charles River Apparel for quality and reliability, and it’s my goal to create even stronger partnerships that yield mutual success.”

• Barry Lipsett, Jason’s father, will continue to serve as CEO, partnering with his son to lead the company going forward.
• Jason is the same age, 34, that Barry was when he became the company’s president in 1993.
  

“Jason’s leadership and dedication have been pivotal in driving our recent successes,” Barry says. “He has an innate understanding of our business, our crew and our customers. His promotion to president isn’t just a reflection of his accomplishments, but a testament to his vision for the future of Charles River Apparel.”

As part of that vision, Adam Heaslewood has joined the company as chief revenue officer, overseeing sales and marketing. Reporting directly to Jason, he’ll begin his new role on the same day that his new boss takes over.

• Heaslewood’s career in sales and marketing spans several decades and includes leadership roles at global brands like adidas, where he helped drive growth and expand the brand’s market presence.
• He was most recently vice president of sales at Los Angeles-based Therabody, working on the retail side of the business. Therabody also sells into the promotional products market.

“What really stood out to me about Adam is his impressive track record and how closely his values align with those of Charles River Apparel,” Jason says. “Adam is deeply team-focused, driven and has a vision that I believe will be key in shaping the future of our company, creating opportunities for both our employees and our customers.”

It’s A Family Affair

Entrepreneurship is in the Lipsett blood.

In the wake of World War II, Walter bought Central Steel Supply from his uncles and brother, resuscitating the floundering business. More than three decades later, inspired by the unpredictable weather of New England, he launched Charles River Apparel with its signature product: a yellow rain slicker.

After several years of stagnant sales in the retail space, Walter sent his son Barry (who joined Charles River Apparel in 1987) to a local promotional products trade show to gauge the potential of the market. The jacket was a hit, and the Lipsetts embraced the promo industry.

• Over the past 40-plus years, the product line has expanded to include additional outerwear, activewear, corporate attire and other apparel.

In 1993, Barry purchased the business from his father, becoming president and CEO. He has since led the Sharon, Massachusetts-based supplier to significant sales increases: Charles River Apparel generated $40 million in 2023 revenue, up 25% since 2020. For 2024, the company earned PPAI 100 High Marks in the categories of Innovation and Employee Happiness.

• Serving more than 13,000 distributors nationwide, the company’s lines have penetrated sporting goods, college bookstores, resort stores and other avenues.
  

From left to right: Jason, Deb, Barry and Walter Lipsett

Charles River Apparel has focused on philanthropic efforts as part of the Charles River Cares program, which was created by Barry’s wife Deb in 2010. Through the program, the firm has donated more than 108,000 products since 2018 to go along with additional monetary donations. Employees participate in volunteerism and fundraising events, such as Christmas in the City, an annual toy-filled party for homeless and poverty-stricken Boston-area families. Charles River Apparel’s closest philanthropic partner is Circle of Hope, which supports 22 homeless shelters in the area.

• Throughout 2024, Charles River Apparel is donating 3% of net sales from its Franconia Collection to Meals on Wheels for a minimum of $25,000.
• From August 1 to October 31, the firm is donating 10% of the purchase price from select pink items for a minimum donation of $10,000 and a maximum donation of $20,000 to the Breast Cancer Research Foundation.
• Barry also participates in the Pan-Mass Challenge, an annual bike-a-thon that raises funds for cancer research.

“From the beginning, my vision for Charles River Apparel was to create a business rooted in strong core values, like bringing in quality merchandise and building good relationships with customers,” Walter says. “As we grew, maintaining these values became even more important, and I always hoped the company would remain in the family long-term. That was my objective when I founded the business, and I take great pleasure in seeing this legacy continue within our family.”

A New Generation

Although Barry had hoped he would one day hand the reins over to his son, he never pressured Jason to join Charles River Apparel.

He credits Deb, who was a career counselor at various colleges, in guiding Jason to explore his interests before choosing a path that resonated with him.

• Barry also attributes Jason’s time as a competitive athlete – he played men’s varsity tennis in college and was a three-time Bay State Conference All-Star during high school – with teaching him discipline, hard work and leadership.

In 2013, Jason graduated magna cum laude from Bentley University with a bachelor’s in business management and a minor in psychology. The next year, he joined Charles River Apparel as a digital marketing manager and would later serve as the key project manager for the development of the company’s website.

• In the fall of 2017, he took a two-year sabbatical to earn an MBA from Boston College.

Upon his return, Jason became marketing director before transitioning to vice president of strategic initiatives, a new position that he says enabled him to work as more of a partner with the leadership team, especially Barry, to “evolve and guide the big decisions impacting the company.”

Furthermore, Barry says he’s been helping prepare Jason for this new role by encouraging him to seek additional training, build relationships with customers and business partners and learn from the company’s successes and failures.

“Jason has a natural ability to build deep connections with team members, and I’ve always encouraged him to lean into this strength,” Barry says. “I’ve also emphasized the importance of aligning with the company’s core principles established by my dad, ensuring that our company’s legacy continues. Through these experiences, Jason has developed the skills and confidence needed to step into this expanded role.”

At the same time, Barry plans on staying very involved by nurturing and strengthening relationships with customers, constantly advocating for continuous improvement and seeking new ideas to differentiate the brand.

“Barry is very hands-on and excels at problem-solving, always directly engaging with challenges as they arise and constantly pushing the envelope with new ideas,” Walter says. “On the other hand, Jason has a unique approach to leadership by creating a strong team, leveraging a growth-oriented mindset and developing short and long-term strategies. It’s wonderful to see Barry and Jason complement each other so well and respect each other’s opinions, guiding the company forward with their distinctive styles.”

What’s Next For Charles River Apparel?

As president, Jason says he’ll focus on increasing market share and brand awareness through innovation, sustainability and customer relationships.

• Under his leadership, the company will also prioritize modernizing the customer experience, expanding its product offerings and leveraging digital strategies.

“We now see more and more brands in this space, which is exciting,” Jason says, “and we believe that Charles River can easily be a true, nationally recognized lifestyle brand. We have all the ingredients: a great product, great story, great team and a great customer base.”

Jason says he’s also building a team built for long-term success, starting with the hiring of Heaslewood, who has plenty of experience growing apparel brands.

“After speaking with Jason and the team, I came away thinking they were humble and hungry, which really resonated with me,” Heaslewood says. “I’ve worked for corporations where there were egos at play, but they seem to park the egos at the door and just generally want what’s right. That comes with running a family business for so long.”

Heaslewood adds that the company’s structural changes allow the leadership team to now focus on key strategic initiatives to evolve Charles River Apparel.

“One thing that really appealed to me is the ability to be agile and pivot quickly if we need to,” Heaslewood says. “In working for a global brand like adidas, you can’t pivot quickly no matter how much you want to. So, if we can build off our infrastructure, then there are some exciting things that we could try within the marketplace.”

Ultimately, the leadership team is now able to invest in the brand in a bigger way, Jason says.

“We’re going to explore new opportunities for Charles River Apparel and really extend our solid core,” Jason says. “Our goal is to make Charles River Apparel more of a front-of-mind brand name for consumers bringing that demand into the promotional products industry.”

Written by: John Corrigan

Published with Permission from PPAI

Lakewood, New Jersey-based supplier GMG Works (PPAI 313899, Standard-Base) has announced that Howard Cubberly has joined the company as CEO.

• GMG Works was founded 20 years ago as GMG Pen & Ultrapens and has since been rebranded.
• Its product line includes pens, highlighters, drinkware and other promotional products.

“I’m excited to join GMG Works,” Cubberly says. “The super dedicated team here that has built a five-star and A+ reputation of personalized customer service for our distributor partners. The future is bright as we work to build on this foundation and align our value promise of continued great service with new creative product and decoration expansion to be the ‘Distributor’s Supplier.’”

Cubberly’s Background

A 33-year promo veteran, Cubberly most recently served as global general manager at Goldstar – the No. 16 supplier in the PPAI 100.

• Under his leadership, Goldstar developed new product categories, expanded throughout North America and Europe and received multiple awards.
• Cubberly previously worked for supplier Astor Chocolate and spent 14 years in sales management at Koozie Group – the No. 9 supplier in the PPAI 100.

“With Howard as our leader, we’re extremely excited about the future and for new opportunities,” says Jack Kahan, director of operations at GMG Works. “We’ve invested heavily in the latest printing technology, best software for order and customer experience efficiency, an entire line of patented designed pens, sustainable products and deep inventory for our programs department.”

Storm Creek (PPAI 438091, Gold) – the No. 43 supplier in the PPAI 100 – has announced a partnership with bluesign (PPAI 825888, Standard-Base), a Swiss business services provider specializing in sustainable textile production.

• The Eagan, Minnesota-based supplier is the first U.S.-based promotional products company to join the bluesign System.

Founded in 2000, bluesign employs more than 100 environmental experts, many of them Ph.D. chemical scientists who work closely with manufacturers and suppliers to ensure production meets bluesign’s rigorous environmental, worker and consumer safety requirements in pursuit of textile materials certifications. If the manufacturing and chemistry assessments don’t meet the criteria, bluesign creates a roadmap for improvement.

• Cybergroup International – a German-based company and the No. 34 distributor in the PPAI 100 – is bluesign’s first partner in the promo industry.

“This partnership takes our already strong commitment to sustainability to the next level,” says Doug Jackson, founder and president of Storm Creek. “Our aim is to inspire and educate promotional products distributors to sell sustainably and increase the impact their end buyers can have. Storm Creek is proud to set the standard for the promo industry.”

Storm Creek’s Pledge

As part of this commitment, Storm Creek has pledged to use only bluesign-approved fabrics by 2025.

• Its upcoming 2025 product catalog already features a range of products made with bluesign-certified fabrics.

Storm Creek’s partnership with bluesign aligns with its mission to deliver high-performance, sustainable apparel while minimizing environmental impact.

Last year, the woman-owned, eco-friendly lifestyle apparel brand surpassed 32 million upcycled bottles used in its garment manufacturing, and it also accelerated the overall percentage of recycled content in its garments to more than 90%.

“We’re thrilled to welcome Storm Creek as a promotional products brand to join the bluesign System,” says Daniel Rüfenacht, CEO of bluesign. “Their commitment to using 100% bluesign- approved fabrics by 2025 is a bold and commendable step towards a more sustainable future. Storm Creek’s leadership in this area sets an inspiring example for the entire promotional products industry.”

Drinkware supplier Tervis (PPAI 110960, Standard-Plus), known for its insulated tumblers, has filed for Chapter 11 bankruptcy.

• In the promotional products industry, Tervis’ product line is carried by Koozie Group – the No. 9 supplier in the PPAI 100.

The filing states that the North Venice, Florida-based company, which doesn’t disclose annual revenue figures, has total assets and liabilities ranging from $10 to $50 million, Business Observer reported.

“This difficult business decision was one that we made in order to preserve the company’s legacy and better the company for the future to ensure its continued existence and operational success in the decades to come,” said Tervis Chairman Rogan Donelly.

Koozie Group CEO Pierre Montaubin tells PPAI Media that, despite the bankruptcy filing, “it’s business as usual with Tervis.”

“We’ve been in close contact with them and will support them through this next phase,” Montaubin says. “Tervis is a fantastic brand with a great legacy, and we expect its products to continue to perform well in the promo market. ”

What Caused Tervis’ Bankruptcy?

Executives have cited several factors for the bankruptcy:

• A drop in consumer spending and a rise in operating expenses due to inflation.
• A post-COVID spike was followed by a sharp decline in e-commerce sales.
• Retail locations that have failed to recover from the pandemic.
• The closure of its distribution facility in order to sublease the property, “which has proven difficult.”
• A “burdensome” lingering lawsuit filed in 2018 by a previous supplier.

Another major challenge for Tervis has been adapting to the stainless-steel drinkware trend, driven by competitors Yeti, S’well, Hydro Flask and, most notably, Stanley.

RELATED: Stanley Drinkware’s Parent Firm Requests Dismissal Of Class Action

Tervis entered the stainless on-the-go drinkware market in 2016, but, officials say, “struggled to be competitive with larger brands on price at retail locations, and didn’t meet consumer expectations on product quality regarding chipping and peeling until January 2023,” Business Observer reported.

The third-generation family business, which was founded in 1946, won’t seek funding from outside investors to aid the company post-bankruptcy, Donelly said.

However, layoffs are expected in the coming weeks.

• Tervis currently has about 140 employees, down from some 200 last fall and from its peak of 1,000 employees (including seasonal workers) nearly a decade ago, Business Observer reported.

Recovery Plan

Tervis CEO Hosana Fieber says the projected time frame to exit bankruptcy is three to six months.

“We have a thoughtful and executable plan in place to focus the company’s attention and resources back to our legacy product,” Fieber said.

• That plan includes launching a new product category of melamine – a plastic often found in reusable utensils, dishes and cups – to accompany its classic drinkware portfolio, Business Observer reported.

“We didn’t meet consumer standards when we went outside our initial brand position and that’s what we need to get back to,” Fieber said. “We will focus on our classic portfolio while keeping our current high quality, premium stainless product lineup.” 

The Federal Trade Commission’s new rule banning employers from imposing non-compete clauses on their employees has been denied by a federal judge in Texas.

Following up on her decision last month to grant a preliminary injunction preventing the rule from taking effect in September, U.S. District Judge Ada Brown on Tuesday struck down the ban, saying that the FTC didn’t have the power to issue such a sweeping regulation.

“The role of an administrative agency is to do as told by Congress, not to do what the agency thinks it should do,” Brown wrote in a 27-page opinion. “In sum, the court concludes that the FTC lacks statutory authority to promulgate the non-compete rule, and that the rule is arbitrary and capricious. Thus, the FTC’s promulgation of the rule is an unlawful agency action.”

‘Potential Appeal’

U.S. Chamber of Commerce President and CEO Suzanne Clark called the decision a “significant win in the Chamber’s fight against government micromanagement of business decisions.”

Meanwhile, FTC spokesperson Victoria Graham said the agency is “seriously considering a potential appeal.”

“We’re disappointed by Judge Brown’s decision and will keep fighting to stop non-competes that restrict the economic liberty of hardworking Americans, hamper economic growth, limit innovation and depress wages,” Graham said in a statement to ABC News.

Conflicting Decisions

• The motion was requested by tax preparation company Ryan LLC and the U.S. Chamber of Commerce, which filed a lawsuit just one day after the FTC’s 3-2 vote to issue the ban, which was set to take effect on September 4.

However, on July 23, a federal judge in Pennsylvania denied a small business’ request to temporarily block the ban.

• U.S. District Judge Kelley Hodge in Philadelphia said that the “FTC is empowered to make both procedural and substantive rules as is necessary to prevent unfair methods of competition” under Section 5 of the FTC Act.

And then last week, a federal judge in Florida also temporarily blocked the ban.

• U.S. District Judge Timothy Corrigan cited the “major questions doctrine,” which says that federal agencies can only issue rules with broad societal impacts with Congress’ explicit permission, Reuters reported.

Breaking Down The FTC Ruling

• About 30 million people (20% of U.S. workers) have signed non-competes, according to the FTC.

In February, PPAI Media listed non-compete clauses as one of the key employment areas to watch in 2024 after the FTC proposed the legislation that this ban initially stemmed from in January.

• California, Minnesota, Oklahoma and North Dakota have already banned noncompete agreements, and at least a dozen other states have passed laws limiting their use, Reuters reported.

Rachel Zoch, public affairs and research editor at PPAI, says that the U.S. Supreme Court overturned a 40-year precedent of deference to federal agencies in June, “so it’s likely we’ll see more challenges to administrative rules like this.”

“It’s possible that Congress will take up the issue, but not before the election,” Zoch says.

On July 3, Brown partially blocked the rule, saying that the FTC “lacks the substantive rulemaking authority with respect to unfair methods of competition.”

Non-compete clauses are a contractual term between an employer and a worker that blocks the worker from working for a competing employer or starting a competing business, typically within a certain geographic area and period of time after the worker’s employment ends.

Last year, Joshua White – then the head of strategy and general counsel at BAMKO and a member of the PPAI Board of Directors – wrote a column for PPAI Media arguing against non-compete contracts as a practice in promo and predicting the FTC’s decision.

“The point here is not to challenge your opinion on non-competes,” White wrote. “I expect the FTC will take that issue out of your hands soon enough. My point is to challenge the way you think about people, culture and the role you play in shaping both.”

Written by: John Corrigan

Published with Permission from PPAI