Clothestime Stores Inc. is close to settling a trademark dispute with a Florida-based exotic-clothing company over the use of the name Eye Candy, according to an attorney for the Anaheim-based retailer.
Eye Candy is the name used by Clothestime for its private-label apparel and accessories sold in Clothestime stores and its 2 1/2-year-old, 16-unit youth-oriented Eye Candy retail chain.
The Florida company, which has sold its sexy undergarments since July 1999 is likely to retain its name under a license agreement, said Attorney Joseph M. Gabriel of Liner Yankelevitz in Santa Monica, who is representing Clothestime. He was unable to comment further on the pending settlement of the suit filed in December.
Clothestime has been struggling to reinvent itself since a team headed by David Sejpal took the company private out of bankruptcy in September 1997. Clothestime was a 500-unit retailer with sales of roughly $323 million in 1995 and 3,000 employees, but the chain was struggling and losses that year deepened to roughly $15 million.
Clothestime’s sales in the first year following the buyout were in the $200 million range and it reportedly turned a profit for the first time since 1994. However, according to the lawsuit, 1999 sales were $140 million for the then-280-unit chain.
Calls to Clothestime officials were not returned.
