Time for fashion buys

It's the old buy-low, sell-high bit - and among the smaller fashion brands there might be some bargains out there. Portfolio.com spots two in L.A. One is Mblem, launched in 2006 by pop-star-turned-actress Mandy Moore. What started out as a vintage T-shirt brand has morphed into a complete collection carried in more than 500 stores. Also being looked at is Kelly Wearstler - yeah, the former Playboy centerfold who is a judge on Bravo’s "Top Design." She has fabric, rug, and wallpaper lines, and bedding and tabletop collections are in the works (I’m sure it’s just because she’s talented).

Since early last fall, with fuel prices high and markets shaky, interest in acquiring smaller fashion brands—as well as larger ones that haven’t yet expanded internationally—has been on the rise. Smaller private equity outfits that had been priced out in recent years are looking for toeholds in the industry for $1 million to $10 million; larger companies outside of the apparel business are seeking to diversify; and foreign investors are trying to capitalize on the weak dollar. Tharani, for one, is hot on the prowl. “We’re looking at a dress company, which makes sense because we have two other dress companies,” he said. “It will make us more important with sourcing and with retailers. We’re looking at a high-end shoe-and-accessory company and at a men’s designer brand. There are many different opportunities, but most people are gun-shy.”