American Apparel Projects Q2 Loss
Warning that its sales are slipping and its debts are mounting, Counselor Top 40 supplier American Apparel (asi/35297) has released a preliminary Q2 earnings statement, announcing it will try to amend its credit pacts with lenders to stay in business. While the California-based company is only projecting a second quarter revenue drop of about $4 million compared to last year, the supplier expects a significant operational loss with greatly restricted cash flow. In a three month period earlier this year, American Apparel’s debt increased by $30 million.

As part of its financial statement, American Apparel announced it doesn't expect to have sufficient liquidity over the next 12 months, prompting concerns that the company will fail to meet demands of creditors as early as September 30 of this year. The supplier is heavily indebted to multiple parties, including British-based firm Lion Capital, which made an $80 million investment in American Apparel early last year.

Adding to its recent struggles in sales and performance, American Apparel has faced production difficulties after laying off 1,500 workers last summer. The layoffs were tied to a government probe that questioned the immigration status of hundreds of American Apparel factory workers. Then, as American Apparel was preparing to release an earnings report last month, the company’s accounting firm, Deloitte & Touche, effectively ended its relationship with the supplier, citing potentially unreliable financial controls.

Fields Manufacturing Acquires Animal Fair
Minnesota-based Fields Manufacturing (asi/54100) has acquired the name and assets of supplier Animal Fair (formerly asi/36235), as well as selected inventory from Princess Soft Toys, which closed in June after 45 years in business. Terms of the transaction were not disclosed, but company executives say Fields has purchased a "significant" amount of inventory. "We definitely believe this will be a solid product line for us," said Matt Bertram, president of Fields, in an interview with Counselor this morning. "We weren't looking to add a little tiny piece to our line. We've been looking to expand into other categories with products that add value to our industry."

According to Bertram, Fields will continue to provide a separate catalog for selected Princess Soft products. In its own 2011 catalog, due out January 1 of next year, Fields will feature Princess Soft items as well, adding the products as a new line. At its St. Cloud facility, Fields will immediately begin imprinting Princess Soft items. "We're excited about the line," says Bertram. "There's not that many suppliers that offer plush toys in the industry."   

Banks Ease Lending Standards
For the first time since 2006, large banks have loosened their lending standards and made it easier for small businesses to obtain credit, according to a new survey released by the Federal Reserve. The data, collected during a two-week stretch in July, shows 14.5% of banks have eased standards, while only 5% tightened underwriting rules in the second quarter. "While the survey results suggest that lending conditions are beginning to ease, the improvement to date has been concentrated at large domestic banks," the Federal Reserve wrote in a statement yesterday.

The survey, which includes responses from 57 domestic banks and 23 U.S. branches of foreign banks, shows lenders are considering an increasing number of ways to improve the flow of credit. Some banks are offering lower interest payments and fees, while others have reduced thresholds for credit scores or have required less collateral.

Among notable banks, J.P. Morgan Chase reported its small-business lending increased 37% in the first half of 2010 to $4.5 billion, up from $3.2 billion in the first half of last year. About $160 million of the money the bank loaned was to businesses that were originally denied credit. The survey also cites Bank of America and Wells Fargo as two institutions that are increasingly revisiting loan applications that were, at first, turned down.

Besides the Fed report, there are other indications the lending standards have recently eased. A separate survey released by the National Federation of Independent Business shows only 4% of companies cited financing as their top problem currently. Conversely, according to the same survey, 91% of small-business owners said their credit needs were met, or they simply did not want to borrow at this time.

The Joe Show: Strike A Pose
In this extra-flashy edition of The Joe Show, Counselor Managing Editor Joe Haley shows off some of the trendiest cameras and picture frames the ad specialty industry has to offer. Looking to boost sales? Take your best shot with these hot products.

Click here to see this picture-perfect episode of The Joe Show.

Want more videos? Subscribe now to our YouTube videos.

Congress Urged To Consider Wellness Incentives
Supporters of the Incentive Legislation Campaign (ILC) recently met with Congressional leaders and staffers on Capitol Hill, urging them to back wellness programs through tax benefits to workers and their employers. ILC members believe workplace incentive programs can ultimately be used to improve the health of Americans and reduce escalating medical-care costs. "Incentives have already proved their usefulness in promoting workplace safety and length of employee service," said George Delta, executive director of the Incentive Federation. "One of the best ways to encourage wellness incentives is to make them nontaxable to employees and deductible to employers."

Through their continuing lobbying efforts, IFC members are targeting pieces of legislation that have already been introduced in Congress. "As measures are introduced to encourage employment programs and promote savings in health care, the use of incentives could help jump-start efforts aimed at improving the lives of average Americans and bolstering workplace productivity," said Delta.

Legislative support by Congress could further enhance the value of promotional products as distributors look to tap into the $45 billion incentive market. "We were all very encouraged by the willingness of the senators and their staffers to learn about the workings of our industry and their openness to considering ways in which our objectives could be advantageous to legislative efforts that are currently underway," said Brian Galonek, president of All Star Incentive Marketing (asi/117110).

Tuesday Morning Radio Show Live On The Air
Every Tuesday morning from 10:30 a.m. to 11 a.m. ET, a team of ASI editors debate the most important topics facing the industry. We also, of course, offer our own off-beat look at the market. This morning, we unveiled the set of skills every worker needs, debated when it's time to fire a client and discussed the rising generation of entrepreneurs. Plus, the hosts offered advice to callers looking to combat upcoming school-year promotional challenges.

If you missed the show, a recording is now available at www.asicentral.com/radio. And, don't forget to join us for our next broadcast on Tuesday, August 24. Log on to www.asicentral.com/radio at 10:30 a.m. ET to listen to the show, and give us a call at (215) 953-4979 to hear your voice on the air.

IM Incentives Acquires Premier Products
In a deal merging two Massachusetts-based distributors, IM Incentives (asi/229374) has acquired Premier Products (asi/298551), the companies have announced. Financial terms of the deal, which was finalized early this month, were not disclosed. Per the agreement, Andy Fink, president of Premier Products, will join IM Incentives to focus on sales. "Andy and I are cut from the same cloth in our approach to service," said Jay Shapiro, president of IM Incentives. "The last five or six years, we've helped each other with ideas."

According to Shapiro, the combined company will be headquartered in Needham, MA, with other offices and representation in Florida, Rhode Island and Connecticut. With the addition of personnel from Premier Products, the staff at IM Incentives will expand to 11 employees, including seven salespeople. "We want to increase sales and grow, but do it sensibly, logically and smartly," Shapiro said. "Our sales are up about 8% this year. They've been solid."

Call For Nominations: Women Of The Year Awards
ASI is looking for nominations for our first-ever Women of the Year Awards – these awards will be presented at the 2011 ASI Women's Summit in Dallas. We'd like to recognize fearless, gutsy women who are making a big impact in the ad specialty industry. Know anyone who might fit the bill? Here's the kind of woman we're looking for:

• A gutsy entrepreneur who started her business with nothing and grew it into a super company
• A million-dollar salesperson who can pitch any product and close any deal
• A marketing maven who always knows just how to create the right business buzz
• A social networking wizardress who has taken cyberspace by storm
• An ad specialty veteran who's the favorite mentor for industry newcomers
  

E-mail kakers@asicentral.com with your nominee's name, company and three solid reasons this person should be considered for inclusion on the list. Also, include your name, company and contact information. We'd like to hear from you by September 1.

Join The Best Places To Work Community
Want to create a fun, energetic and motivated workplace? Join the Counselor Best Places to Work Facebook community. Counselor is currently putting the finishing touches on the September Best Places to Work issue, and in conjunction with the issue, we're launching a new Facebook page to give industry companies ideas on ways to improve their work environments and increase business as a result.

Click here to join the community. On August 26, we'll use the Facebook page to exclusively announce the 75 companies that are on the 2010 Best Places to Work list. And from then on, we'll run contests and present educational articles and profiles of top industry workplaces.

ASI Radio Contest
If you like cool, high-tech gadgets and enjoy the weekly ASI Radio Show, then we have some news for you.

Starting on August 17 and culminating in a prize giveaway show on September 14, ASI is running a contest that requires only that you pay attention to each of four shows for a special "Word of the Week." For four consecutive weeks we will give a new "Word of the Week," and on the fifth week we will solicit calls from listeners to identify which word went with which week.

For more information, including the prizes you could win, click here.

Did you know you can take self-paced, on-demand courses at ASI Education's Online Learning Center? This is the newest and most convenient way fogh distributors, decorators and suppliers to get educated. In our newest course for suppliers, "Crash Course: Overseas Product Sourcing & Product Safety," you'll learn about the top issues related to overseas product sourcing; tips for getting your products manufactured safely; and the importance of attending overseas tradeshows.

Click here to take the course.

In The News
Bullet (asi/42424) has reduced the price on 29 PolyPro bag SKUs, including the Hercules grocery tote and the Little June grocery tote. The new prices are lower by 6%-10%.

Superex (asi/90231) has appointed Cochran and Company as the Southeast multiline representative covering GA, FL, MS, AL, VA, NC, SC and TN.

People On The Move
Corvest, parent company of Adva-Lite (asi/32145), Toppers (asi/91530) and It's All Greek To Me (asi/62960), has appointed Adina Belejchak as account manager for the Southeast region.

Imprints Wholesale (asi/62486) has hired Mindy Reynolds as outside sales representative for northern CO, as well as WY, MT, NE and SD.

Jetline (asi/63344) has named Megan Erber regional sales manager for the Mid-Atlantic states.

KATZ Americas (asi/35420) has announced the addition of Marc Adler as director of marketing.

ASI SHOW

THE ASI HOLIDAY PREVIEW ― LESS THANONE MONTH AWAY
Looking for the hottest items for the holidays? Look no further than the ASI Holiday Preview, taking place Monday, September 13, and Tuesday, September 14, at the Sands Expo Center in Las Vegas.

This tabletop event opens with the popular "New Distributor Success Track" led by David Blaise from 1 p.m. to 5 p.m. on Monday, September 13, followed by "Exhibitor Presents" from 9 a.m. to 10 a.m., tabletop exhibits from 10 a.m. to 4 p.m. and a closing networking reception at 4 p.m. on Tuesday, September 14.

Register now for the ASI Holiday Preview in Las Vegas and spend quality time with leading companies. You'll leave with new, inventive ideas for your best holiday season ever! All distributors are invited to attend for FREE.
Plus, reserve your hotel room at www.asishow.com. A limited number of hotel rooms have been secured at the Venetian Hotel for only $149 a night (half off the usual rate of $300)! Visit www.southwest.com for cheap airfares.

REGISTRATION AND HOUSING IS OPEN FOR ALL 2011 ASI SHOWS
As the economy starts to turn around and ad specialty sales increase, it is more important than ever for you to be motivated and prepared for a strong 2011. 

Featuring the industry's leading suppliers, an unprecedented list of keynotes and special events, as well as a comprehensive education program, the 2011 ASI Shows are THE place to find the answers to all your business needs. 

Highlights of the upcoming shows include:

• ASI Orlando: January 23-25, 2011
• A motivating Keynote by actor and activist Michael J. Fox, entitled Always Looking Up: The Adventures of an Incurable Optimist

(Co-sponsored by Evans Mfg., asi/52840, and Showdown Displays, asi/87188) 

• A new Gala at The Wizarding World of Harry Potter™
  

• ASI Dallas: February 16-18, 2011
• An insightful Keynote by former First Lady Laura W. Bush, entitled Life in the White House: Reflections from Mrs. Laura W. Bush

(Sponsored by Pepco Poms, asi/77280)

• The 2nd annual ASI Women's Summit, featuring lunch with Laura Bush, at the Adolphus Hotel's French Room on Feb. 18. Register by August 31 and pay $249.
  (Co-sponsored by Fields Mfg., asi/54100, J. Charles Crystalworks, asi/62985 & Logo Mats, asi/67849)

• ASI New York: March 22-24, 2011
• A private bash at hip hop mogul Jay-Z's nightclub the 40/40 Club
• The Industry's Biggest Speed Networking Session
  

• ASI San Diego: May 18-20, 2011
• An exclusive performance by Emmy® award-winning comedian Wayne Brady
• Home to the 2011 prestigious Counselor Top 40 Awards                        
  

• ASI Chicago: July 19-12, 2011
• A Keynote by local celebrity and football coach Mike Ditka, entitled ACE: Attitude, Character and Enthusiasm

(Sponsored by BamBams, asi/38228)

• A hip Gala Celebration at Chicago's hot spot Enclave nightclub
  

Registration and housing is open for ALL the 2011 ASI Shows. Visit www.asishow.com today. Follow The ASI Show on Twitter and become a fan on Facebook today!

The following are the dates and locations for The ASI Show in 2010 and 2011:
ASI Holiday Preview in Las Vegas, September 13-14, 2010
Orlando, January 23-25, 2011
Dallas, February 16-18, 2011
New York, March 22-24, 2011
San Diego, May 18-20, 2011
Chicago, July 19-21, 2011

Plus, don’t miss the ASI Advantages Roadshow, the industry’s #1 traveling show. Visit www.advantagesroadshow.com for the complete schedule and go to www.asishow.com for information on all ASI Shows.