Denim business closer to pocketing an investment

A Sarasota-based publicly traded denim jeans company in dire need of cash might have found a savior.

The firm, Obscene Jeans, says it's negotiating a multimillion-dollar financing agreement while it shows off its first fashion line at an industry trade show in Las Vegas. “The new capital we're working to secure will give us the financing necessary to deliver on the many production and distribution contracts that we plan on signing there,” Obscene Jeans President and CEO Robert Federowicz says in an Aug. 18 statement.

Federowicz and Obscene Jeans lead designer Rachel Stark-Cappelli didn't return calls for comment. The release offers no further information, including how much the investment will be or who will make it.

Still, if the investment comes together, it will be quite the coup for the firm, which aims to sell luxury denim jeans in worldwide markets. The company's projected price points for the jeans are $140-$250 a pair. (See Business Review, July 29.)

Obscene Jean's ambitions, however, have so far been grounded in recession reality. For example, the firm, traded over the counter (symbol: OBJE) reported a $340,713 net loss for the nine months ended May 31, according to Securities and Exchange filings. The firm also had negative working capital of $249,785 as of May 31.