Levi Strauss & Co

Levi Strauss & Co. (LS&CO) is a privatelymanufacturing of denim overalls only began in the
held clothing company known worldwide for its Levi's1870s.
brand of denim jeans. It was founded in 1853 whenModern jeans began to appear in the 1920s. In the
Levi Strauss came from Bavaria, Germany to San1950s and 1960s, Levi's jeans became popular among
Francisco, California to open a west coast branch ofa wide range of youth subcultures, including greasers,
his brothers' New York dry goods business. Althoughmods, rockers, hippies and skinheads. Levi's popular
the company began producing denim overalls in theshrink-to-fit 501s were sold in a unique sizing
1870s, modern jeans were not produced until thearrangement; the indicated size was related to the size
1920s. The company briefly experimented (in theof the jeans prior to shrinking, and the shrinkage was
1970s) with employee ownership and a public stocksubstantial. The company still produces these unshrunk,
listing, but remains owned and controlled byuniquely sized jeans, and they still sell very well.
descendants and relatives of Levi Strauss' fourBy the 1990s, the brand was facing competition from
nephews.other brands and cheaper products from overseas,
<a rel="nofollow"and began accelerating the pace of its US factory
onclick="javascript:pageTracker._trackPageview('closures and its use of offshore subcontracting
outgoing/article_exit_link');" href=" stocking</a>Leviagreements. In 1991, Levi Strauss faced a scandal
Strauss & Co. is a worldwide corporationinvolving six subsidiary factories on the Northern
organized into three geographic divisions: Levi Strauss,Mariana Islands, a US commonwealth, where some
North Americas (LSNA), based in the San Francisco3% of Levi's jeans sold annually with the Made in the
headquarters; Levi Strauss Europe (LSE), based inUSA label were shown to have been made by
Brussels; and Asia Pacific Division (APD), based inChinese laborers under what the United States
Singapore.The company employs a staff ofDepartment of Labor called "slavelike" conditions.
approximately 10,500 people worldwide, and owns andCited for sub-minimal wages, seven-day work weeks
develops a few brands. Levi's, the main brand, waswith 12-hour shifts, poor living conditions and other
founded in 1873 in San Francisco, specializing in rivetedindignities, Tan Holdings Corporation, Levi Strauss'
denim jeans and different lines of casual and streetMarianas subcontractor, paid what were then the
fashion.largest fines in US labor history, distributing more than
From the early 1960s through the mid 1970s, Levi$9 million in restitution to some 1,200 employees.Levi
Strauss experienced explosive growth in its businessStrauss claimed no knowledge of the offenses, then
as the more casual look of the 60s and 70s ushered insevered ties to the Tan family and instituted labor
the "blue jeans craze" and served as a catalyst forreforms and inspection practices in its offshore
the brand. Levi's, under the leadership of Jay Walterfacilities.
Haas Sr., Peter Haas Sr., Paul Glasco and George P.The activist group Fuerza Unida (United Force) was
Simpkins Sr., expanded the firm's clothing line by addingformed following the January 1990 closure of a plant in
new fashions and models, including stoned washedSan Antonio, Texas, in which 1,150 seamstresses
jeans through the acquisition of Great Western(primarily Latina) some of whom had worked for Levi
Garment Co.,(GWG), a Canadian clothingStrauss for decades saw their jobs exported to
manufacturer, acquired by Levi's. GWG wasCosta Rica. During the mid and late 1990s, Fuerza
responsible for the introduction of the modern "stoneUnida picketed the Levi Strauss headquarters in San
washing" technique, still in use by Levi Strauss.Francisco and staged hunger strikes and sit-ins in
Mr. Simpkins is credited with the company's recordprotest of the company's labor policies.
paced expansion of its manufacturing capacity fromThe company took on multi-billion dollar debt in
fewer than 16 plants to more than 63 plantsFebruary 1996 to help finance a series of leveraged
nationwide from 1964 through 1974. Perhaps moststock buyouts among family members. Shares in Levi
impressive, however, was that Levi's' expansion underStrauss stock are not publicly traded; the firm is today
Simpkins was accomplished without a single unionizedowned almost entirely by indirect descendants and
employee as a result of Levi's' and the Hass families'relatives of Levi Strauss, whose four nephews
strong stance on human rights and Simpkins' use ofinherited the San Francisco dry goods firm after their
"pay for performance" manufacturing at the sewinguncle's death in 1902.[13] Levi's bonds are traded
machine operator level up. As a result, Levi's' plantspublicly, as are shares of the company's Japan affiliate,
were perhaps the highest performing, best organizedLevi Strauss Japan K.K.
and cleanest textile facilities of their time. Levi's evenIn June 1996, the company offered to pay its workers
piped in massive amounts of air conditioning into itsan unusual dividend of up to $750 million in six years'
press plants, which were known in the industry to betime, having halted an employee stock plan at the time
notoriously hot, for the comfort of Levi's workers.of the internal family buyout. However, the company
2004 saw a sharp decline of GWG in the face offailed to make cash flow targets, and no worker
global outsourcing, so the company was closed anddividends were paid.[14] In 2002, Levi Strauss began a
the Edmonton manufacturing plant shut down.[2]close business collaboration with Wal-Mart, producing a
Dockers was launched in 1986. Sold largely throughspecial line of "Signature" jeans and other clothes for
department store chains, helped the company growexclusive sale in Wal-Mart stores until 2006.[15] Levi
through the mid-1990s, as denim sales began to fade.Strauss Signature jeans can now be purchased at
Levi Strauss attempted to sell the brand in 2004 toseveral stores in the US, Canada and Japan.
relieve part of the company's $2 billion outstandingThe company is now Wal-Mart's largest worldwide
debt.strategic partner, conforming to Wal-Mart's business
Launched in 2003, Levi Strauss Signature featuresand labor practices.Levi Strauss & Co. closed 58
jeanswear and casualwear.[5] In November 2007,US manufacturing plants between 1981 and 1990,
Levi's released a mobile phone in co-operation withsending 25% of its sewing operations overseas. Levi's
ModeLabs. Many of the phone's cosmetic attributesaccelerated US plant closings through the 1990s,
are customisable at the point of purchase.closing its last US domestic plant (in San Antonio,
Jacob Davis was a tailor who frequently purchasedTexas) in January 2004.
bolts of cloth made from hemp from Levi StraussAccording to the New York Times, Levi Strauss leads
& Co.'s wholesale house. After one of Davis'the apparel industry in trademark infringement cases,
customers kept purchasing cloth to reinforce tornfiling nearly 100 lawsuits against competitors since 2001.
pants, he had an idea to use copper rivets to reinforceMost cases center on the alleged imitation of Levi's
the points of strain, such as on the pocket corners andback pocket double arc stitching pattern (U.S.
at the base of the button fly. Davis did not have thetrademark #1,139,254]). Levi's has sued Guess?, Esprit
required money to purchase a patent, so he wrote toHoldings, Zegna, Zumiez and Lucky Brand Jeans,
Levi suggesting that they both go into businessamong other companies.
together. After Levi accepted Jacob's offer, on MayBy 2007, Levi Strauss was again said to be profitable
20, 1873, the two men received patent #139,121 fromafter declining sales in nine of the previous ten years.
the United States Patent and Trademark Office. TheIts total annual sales, of just over $4 billion, were $3
patented rivet was later incorporated into thebillion less than during its peak performance in the mid
company's jean design and advertisements. Contrary1990s.After more than two decades of family
to an advertising campaign suggesting that Leviownership, rumors of a possible public stock offering
Strauss sold his first jeans to gold miners during thewere floated in the media in July 2007.
California Gold Rush (which peaked in 1849), the