Classic Fashion, apparel maker of Walmart and Target, opens first US facility in Santa Ana – Orange County Register

Classic Fashion, a Jordan-based manufacturer of athletic and casual wear for Walmart, Target and other major retailers, has opened its first US manufacturing facility in Santa Ana.

The company signed a five-year lease on S. Susan St. in 1939 for a 12,000 square foot manufacturing facility and 7,200 square feet of warehouse space. It will initially employ 125 people but is expected to grow to 350 over the next five years.

Classic Fashion invested $4 million in the new facility, which is already operational and expected to be in full production by mid-November, company officials said.

Walmart, which named Classic Fashion its 2018 and 2020 General Merchandise Supplier of the Year, hosted a ribbon cutting for the manufacturing/warehouse facility on Thursday, October 6th. The apparel company said it earned that title by adhering to Walmart’s strict compliance. Quality, performance and sustainability goals.

Impact on the supply chain

The apparel industry, like many others, has been severely impacted by supply chain delays during the COVID-19 pandemic.

89% of fashion executives polled in a February 2022 survey by Statistica said rising raw material costs would impact their supply chain throughout the year, and 85% expect this to continue into 2023.

The survey also found that 87% of respondents were concerned about increased shipping costs, 79% were concerned about port delays and disruptions, and 78% said they were affected by temporary vendor closures.

Other key concerns centered on commodity availability, consumer demand volatility, international trade tensions and changing consumer preferences.

Classic Fashion was founded 20 years ago and has been supplying products to Walmart for 16 years. Most of the company’s apparel — including swimwear, golf apparel, jackets and jeans — is marketed under its customers’ own brands.

In addition to being the largest retailer in the US, the list of customers includes Sam’s Club, Target, JC Penny, Adidas, Kirkland, Nautica, American Eagle, Hanes, Reebok, and Tommy Hilfiger, among others.

In an industry plagued by wage theft, Classic Fashion pays the applicable minimum wage with overtime premiums. The company says its manufacturing environments are “healthy and productive with popular music of workers’ choice, played at a volume comfortable for workers without disrupting their work.”

Sanal Kumar, chairman and chief executive officer of Classic Fashion, offered an outlook on the company’s partnership with Walmart in a statement released in May 2021.

“I started in 2003 and Walmart came to me in 2005,” he said. “Since then we have grown by leaps and bounds. And today I have a $300+ million relationship with Walmart.”

Kumar said that up to 45% of the $628 million in 2021 business revenue came from Walmart.

The company said it chose Santa Ana as its first manufacturing location in the United States because of the city’s skilled workforce.

https://www.ocregister.com/2022/10/06/classic-fashion-garment-maker-to-walmart-and-target-opens-first-u-s-plant-in-santa-ana/ Classic Fashion, apparel maker of Walmart and Target, opens first US facility in Santa Ana – Orange County Register

Dais Johnston

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