Classic Fashion, maker to Walmart and Target, opens first U.S. plant in Santa Ana – Sign Up Orange County

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Classic Fashion, a Jordan-based sportswear and apparel maker for Walmart, Target and other major retailers, has opened its first U.S. manufacturing plant in Santa Ana.

The company is located at 1939 S. Susan St. A five-year lease has been signed for a 12,000-square-foot manufacturing plant and 7,200 square feet of warehouse space. It will initially employ 125 workers, but expects to expand to 350 workers over the next five years.

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

In the year Walmart, which Classic Fashion named the 2018 and 2020 General Merchandiser of the Year, held a ribbon cutting for its manufacturing/warehouse facility on Thursday, Oct. 6. Quality, performance and sustainability goals.

Supply chain impacts

The apparel industry, like many others, has been hit hard by supply chain delays during the Covid-19 pandemic.

Eighty-nine percent of fashion executives surveyed in February 2022 by Statisticians expect rising raw material prices to affect their supply chain throughout the year, and 85 percent expect it to continue through 2023.

The survey found that 87% of respondents were concerned about rising shipping costs, 79% were concerned about port delays and disruptions, and 78% were affected by temporary supplier shutdowns.

Other concerns center around raw material availability, volatility in consumer demand, global trade tensions and changes in consumer preferences.

Classic Fashion was founded 20 years ago and has supplied products to Walmart for 16 years. Most of the company’s apparel — swimwear, golf wear, jackets and jeans — is sold under its customers’ private label brands.

In addition to the largest retailer in the US, its client list includes Sam’s Club, Target, JC Penney, Adidas, Kirkland, Nautica, American Eagle, Hans, Reebok and Tommy Hilfiger, among others.

In an industry plagued by wage theft, Classic Fashion says it pays minimum wage with overtime allowance. The company says the production environment is “healthy and productive with a selection of popular music and volume that keeps employees happy without disrupting their work.”

In a statement released in May 2021, Sanal Kumar, chairman and managing director of Fine Fashion, gave some insight into the company’s partnership with Walmart.

“I started my career in 2003 and Walmart joined me in 2005,” he said. “Since then we have grown by leaps and bounds. And today I have over $300 million in relationships with Walmart.

Kumar said 45% of the $628 million in business revenue for 2021 will come from Walmart.

The company chose Santa Ana for its first U.S. manufacturing site because of the city’s highly trained workforce, he said.

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