J-Lo to Revitalise Tommy Hilfiger

Tommy Hilfiger, the troubled clothing group, is understood to be in talks to merge with The Sweetface Fashion Company, the Jennifer Lopez clothing range.

It has not been a good year for Hilfiger as the company suffered losses of around GBP 307m due in part to its flailing US wholesaling operation. A takeover by the American Jones Apparel Group fell apart earlier in the year, and analysts say Hilfiger needs a younger, fresher brand to stay competitive. Furthermore, Joel Horowitz, the company's chief executive, has said he is stepping down.

The J-Lo brand has taken a market position that was dominated by Hilfiger only three or four years ago. Sweetface has an annual turnover of 100m and could be the answers to Tommy's dreams. Sweetface is half owned by Tommy Hilfiger's brother, Alan, with the remaining shares owned by Ms Lopez. Denise Seegal, Sweet face' chief executive, could easily replace Mr Horowitz.