Retailer fails in brand bid

Private equity-owned clothing and footwear retailer Colorado has lost a legal challenge aimed at preventing handbag retailer Strandbags from using the name of the American state on bags and wallets sold through its stores, The Age reports.

However, Colorado succeeded in defending its trademark of the brand for backpacks against Strandbags or any other retailer that tries to sell those products under this name, the paper said.

Colorado, which has some 110 stores, launched the lawsuit as a listed company. In July, it was bought by Affinity Equity Partners in a $450 million deal which also involved the sale of brands Mathers, Williams the Shoemen, Diana Ferrari and JAG.

The dispute has been going through the courts for more than three years and concerns the use of product names dating back to when Colorado was owned by US-based Venator Group, the parent of Footlocker and the biggest shoe seller in the US.

Inside Retailing