How could Vermont Teddy Bear get even more Vermont?
Put it in a flannel shirt.
The Ohio-based ownership group of Vermont Flannel, USA Brands, announced on April 9 that it had acquired Vermont Teddy Bear. Vermont Teddy Bear simultaneously sold its apparel divisions, which include a variety of clothing products, to an affiliate of New York City-based investment firm Lionel Capital.
With the merger, the two companies will continue to function as separate brands, but will come together to expand on one another’s products, according to the Vermont Flannel’s announcement. The companies already collaborated on two products this past year, including a version of Vermont Teddy Bear’s classic 15” teddy bear wearing a Vermont Flannel shirt, the press release stated.
The Vermont Flannel Company is a Vermont-based company that produces flannel products including pajamas, shirts and accessories. The company currently has six stores in Vermont – Ferrisburgh, Burlington, Woodstock, East Barre, Johnson and Manchester – two of which house house production facilities, as well. They also have two stores in Maine, and plan to open a new store in Waterbury, Vt. this coming summer, according to VTDigger.
One of the country’s biggest teddy bear manufacturers, Vermont Teddy Bear does most of its production in Shelburne, Vt. Shelburne also serves as the location of the Vermont Teddy Bear flagship retail store, where the company’s products are sold. Founded in 1981, Vermont Teddy Bear produces bears that are insured for life and are stuffed with recyclable materials, according to its website.
The acquisition of Vermont Teddy Bear by USA Brands had been in the works for a couple of months, and closed on April 4, USA Brand President Matt Bigelow told VTDigger.
“We’re really excited to have another company that supports domestic manufacturing,” Bigelow told VTDigger.
Between the two companies, USA Brands now has 70 full-time employees in the state of Vermont, according to VTDigger.
Bigelow also told VTDigger that there are no planned layoffs, and both Vermont Flannel Company and Vermont Teddy Bear will continue to operate as standalone brands.
One change, however, is the planned departure of Bill Shouldice, now-former CEO of Vermont Teddy Bear. Shouldice will stay on in an advisory role to help with the transition as Joe Van Deman, CEO of USA Brands, becomes the principle decision maker for Vermont Teddy Bear, VTDigger reported.
The Campus was unable to reach a representative from Vermont Flannel Company, Vermont Teddy Bear or USA Brands for comment.
Lindsay Kurrle, commissioner of the Vermont state Agency of Commerce and Community Development, shared in a press conference on April 10 that she spoke to Van Deman about layoffs.
“At this point there was no news of layoffs or plans to pull out of Vermont,” Kurrle said at the press conference, according to VTDigger.
Shouldice shared his excitement about bringing two prominent Vermont brands together in a press release on Vermont Teddy Bear’s website.
“Both companies have a rich history of creating warmth, comfort and wonderful memories for locals and visitors to Vermont alike. It makes so much sense for the next chapter of Vermont Teddy bear,” he said.
The collaboration between Vermont Teddy Bear and Vermont Flannel marks a new chapter for the two organizations, both of which have represented the state of Vermont for decades.
“You can’t come to Vermont without stopping at the Vermont Teddy Bear Factory or taking home a piece of Vermont Flannel with you, and you can’t leave either company’s stores without a warm smile on your face,” Van Deman said in the Vermont Flannel press release.
