New York company scoops up Seattle's BabyLegs

BabyLegs, a South Seattle company that sells leg warmers for infants and toddlers, has been bought by New York-based sock and underwear maker United Legwear.

BabyLegs now becomes a majority-owned subsidiary of United Legwear.

Nicole Donnelly, BabyLegs' 31-year-old founder, stays on as president and creative director. She also joins United Legwear's owner, Isaac Ash, as a minority partner. Financial terms of the deal were not disclosed.

United Legwear will expand BabyLegs' nationwide distribution and add such things as socks and tights to its product mix, Donnelly said. BabyLegs is more known on the West Coast than the East Coast, which United Legwear can change, she said.

"We want to take Manhattan," she said. "This will make BabyLegs more of a national player."

Donnelly came up with BabyLegs four years ago after cutting the bottoms off old socks and sliding them over her infant daughter's legs during what she called "nakedy butt time," her solution to frequent diaper rashes. Donnelly soon found a manufacturer in China and began selling leg warmers in numerous color combinations to other moms.

Last year, BabyLegs sold $4.2 million worth of leg warmers worldwide, primarily through specialty clothing stores. That was up from $3.8 million in 2007, Donnelly said.

BabyLegs will keep its South Seattle offices, where it employs seven people. No layoffs are planned, said Christopher Volpe, United Legwear's chief operating officer.

Donnelly "started from nothing and built a great brand and culture. It's amazing," Volpe said. "But to take it to the next level, she really needed further capital and additional infrastructure."

Given the current credit crunch, he added, BabyLegs can benefit from United Legwear's financial relationships with such lenders as Wells Fargo.

Founded in 1998, United Legwear is a licensee of numerous brands including Puma, True Religion, Skechers and Airwalk. It has a showroom in New York's Garment District, as well as distribution warehouses in New Jersey and California, and it outsources production to factories in China, Italy, Guatemala and Pakistan.

"It's definitely been an emotional process, but I'm very excited about the team in New York," Donnelly said of the sale. "They run a business how it should be run. I'm looking forward to learning from their influence."

Amy Martinez: 206-464-2923 or amartinez@seattletimes.com