Commerce, CA-based Blue Holdings, Inc., best known for its Antik Denim, Yanuk and Taverniti So Jeans brands, has entered into a joint venture agreement with Headgear Inc., the designer and marketer of brands such as Blac Label, Blac Label Pink, Blac Label Gunmetal and Tru Ambition footwear.

The new entity, Blue Holdings Headgear JV LLC (BHH), will market, sell and distribute the Taverniti So, Yanuk, and Antik Denim apparel in the United States. Under the terms of the agreement, BHH will be financed by Headgear Inc., with Blue Holdings and Headgear each owning 50% of the newly formed entity. Headgear will advance Blue Holdings $1.25 million over the course of four months to be used as working capital. The advance will be repaid out of Blue Holdings' portion of BHH's operating profits. Headgear will also finance all production of product purchased by BHH.

BHH will initially market Blue Holdings' products to all current customers of Blue Holdings and Headgear. Headgear, with wholesale sales in excess of $100 million, will also develop non-denim products for distribution by BHH, including T-shirts, hoodies and footwear, under the Taverniti So, Yanuk, and Antik Denim brands. Meanwhile, Blue Holdings will continue to source denim products for its various brands sell those products to BHH for distribution to US retailers. The joint venture also has the right to enter licensing agreements under the said brand names for sale in the US. Any license fees would then be split equally between Blue Holdings and Headgear.

"We are very excited to execute on this broad-based partnership with Headgear, which has re-energized our company during a difficult economic climate," said Glenn Palmer, Chief Executive Officer of Blue Holdings, Inc. "By combining our respective core competencies and creative vision, we will enhance and strengthen the product offerings under the Antik, Yanuk and Taverniti brands as well as broadening their base of distribution. The partnership of these two companies has tremendous synergies and we look forward to a long and successful relationship."

Jeff Watson, Chief Executive Officer of Headgear Inc., added, "The brand equity of Antik, Taverniti So and Yanuk speak for themselves and we feel that working closely with Blue Holdings, we can fully round out the collections and offer complete lifestyle brands."