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CARLSBAD (KGTV) - Among the businesses saying Trump's trade war is hurting is San Diego born JLab, a booming audio company competing with huge brands.The Silicon Valley-style company in Carlsbad is buzzing as you walk through the large modern rectangular door."This company was four people four years ago, but now we're 40." CEO Win Cramer said they have lived the American Dream, saying they're a scrappy business always fighting to get on top."We worked out of literally, a house, or a rundown office or an apartment building forever," he said. JLab competes against major brands like Bose and Beats.They found a niche and made a name for themselves, "We came out with some fun colorful designs that happened to be on trend."Cramer said innovation is their secret weapon."It gives you the option to really tune out on a plane, you push a button and the engine noise goes away," explaining one of their earbuds.Their newest challenge is Trump's trade war. Billions of dollars in tariffs imposed on China are going into effect, and while all of the design work is done in Carlsbad, 100% of JLab's product is shipped from China.Cramer was sitting on a plane when he saw the alert, "this news pops up on my phone that 0 billion in tariffs announced, I quickly perused the list and saw our tariff code that we import 80% of our products was on the list and I just had this feeling of oh gosh we're going to have to fight this battle that we don't know how to fight."He is bending every ear within reach to spread awareness of how this affects JLab and other American businesses and even went to Washington DC to plead his case.Cramer said no legislators were there, just staffers and no electronic devices were allowed into the room. He said there is a written record of what was said."It was the largest hearing in US history which in it of itself should tell you something and how folks are, at least businesses like us are taking this pretty serious," he said.Production costs could increase by 25% and with the holiday season upon us, he's running out of options, "layoffs or pay cuts being the last option, certainly not something that I want to do or think about or consider, but it's something we're being forced to consider."He hopes change is swift and those in power hear his plea.He said the company will find out in mid-September how big the changes will be, and will see impacts as early as October. Cramer added a lot of the burden will fall on the customer, as they will have to raise the products' price.JLab employs 30 people in San Diego. 2630
Cedar Point's newest roller coaster was shut down Saturday after two train cars bumped into each other.Witnesses said the cars were traveling at a slow rate of speed when the collision happened.According to witnesses, one of the carts made a "weird rattle noise" in the second-to-last corkscrew before entering the station. The second cart came in shortly after and hit the first train. 394
Champion is phasing out an exclusive line at Target and Wall Street isn't pleased.Hanesbrands, the parent of Hanes, Champion, Maidenform and Playtex, plunged 19% on Wednesday after it told investors that it would end a longtime deal with Target.The company reported that its profit last quarter fell 18% from the same time last year because costs and expenses both grew, adding to the stock selloff.Hanesbrands has partnered with Target, selling the C9 by Champion men's, women's and children's activewear clothing and shoe brand for 15 years. But the company won't renew its contract for the line with Target when it expires in early 2020.Once the deal lapses, Hanesbrands will still sell clothes there. The retailer accounted for 13% of the company's .4 billion in sales last year and was the biggest customer in its activewear business. Target was Hanesbrands' second largest buyer overall behind Walmart.C9 has been a big cash driver for Hanesbrands, raking in 0 million in sales over the last 12 months. The line also includes sports equipment and extends to plus-size shoppers and pregnant women.Champion is the company's second-largest brand behind Hanes, and it has been growing as it heads to retailers in new markets, including Europe and Asia. Champion has benefited from partnerships with designers and brands like Supreme."Consumers are demanding brands with athletic authenticity," CEO Gerald Evans told analysts on a call Wednesday. "We have driven a brand elevation strategy for Champion to capitalize on these consumer dynamics."The brand's global sales grew 18% last quarter, and Hanesbrands projects Champion will reach more than billion in sales by 2022.Although the company said ending the C9 contract with Target won't affect its long-term forecast for Champion, analysts grilled Hanesbrands executives for answers on why the deal expired and how it planned to replace C9 sales.Evans said Hanesbrands hasn't determined whether it will end the line after 2020, but he left the door open to continuing C9 at another retailer: "There is equity in that brand."One analyst on the call, Doug Thomas at Gamco Investors, believed Target made a mistake by walking away from C9."I just feel like Target must be really out of touch with maybe their core consumers," he said. "This is the time in my view— and I guess a lot of other people's view— to redouble their commitment to Champion." 2416
CHENGDU, China (AP) — The U.S. closed its consulate in the southwestern Chinese city of Chengdu on Monday, a victim of the rising tensions between the global powers. China ordered the mission closed in retaliation for a U.S. order to shut down the Chinese Consulate in Houston. The tit-for-tat closings marked a significant escalation in the multiple disputes between the countries over a range of issues, including trade, technology, security and human rights. A State Department statement expressed disappointment, saying the consulate “has stood at the center of our relations with the people in Western China, including Tibet, for 35 years." 653
CAMP PENDLETON (CNS) -- A 220-acre vegetation fire broke out Saturday at the Camp Pendleton Marine Base.Camp Pendleton Fire Department crews were working on containment at 5:08 p.m. but the forward rate of spread has been stopped, according to a tweet from Camp Pendleton. 280