History of levi

Jacob Davis was a tailor who frequently purchased bolts of cloth made from hemp from Levi Strauss & Co.'s wholesale house. After one of Davis' customers kept purchasing cloth to reinforce torn pants, he had an idea to use copper rivets to reinforce the points of strain, such as on the pocket corners and at the base of the button fly. Davis did not have the required money to purchase a patent, so he wrote to Levi suggesting that they both go into business together. After Levi accepted Jacob's offer, on May 20, 1873, the two men received patent #139,121 from the United States Patent and Trademark Office. The patented rivet was later incorporated into the company's jean design and advertisements. Contrary to an advertising campaign suggesting that Levi Strauss sold his first jeans to gold miners during the California Gold Rush (which peaked in 1849), the manufacturing of denim overalls only began in the 1870s.

Modern jeans began to appear in the 1920s. In the 1950s and 1960s, Levi's jeans became popular among a wide range of youth subcultures, including greasers, mods, rockers, hippies and skinheads. Levi's popular shrink-to-fit 501s were sold in a unique sizing arrangement; the indicated size was related to the size of the jeans prior to shrinking, and the shrinkage was substantial. The company still produces these unshrunk, uniquely sized jeans, and they still sell very well.

[edit] 1990s and later

By the 1990s, the brand was facing competition from other brands and cheaper products from overseas, and began accelerating the pace of its US factory closures and its use of offshore subcontracting agreements. In 1991, Levi Strauss faced a scandal involving six subsidiary factories on the Northern Mariana Islands, a US commonwealth, where some 3% of Levi's jeans sold annually with the Made in the USA label were shown to have been made by Chinese laborers under what the United States Department of Labor called "slavelike" conditions.

Cited for sub-minimal wages, seven-day work weeks with 12-hour shifts, poor living conditions and other indignities, Tan Holdings Corporation, Levi Strauss' Marianas subcontractor, paid what were then the largest fines in US labor history, distributing more than $9 million in restitution to some 1,200 employees.^[6][7][8] Levi Strauss claimed no knowledge of the offenses, then severed ties to the Tan family and instituted labor reforms and inspection practices in its offshore facilities.

The activist group Fuerza Unida (United Force) was formed following the January 1990 closure of a plant in San Antonio, Texas, in which 1,150 seamstresses (primarily Latinas) — some of whom had worked for Levi Strauss for decades — saw their jobs exported to Costa Rica.^[9] During the mid and late 1990s, Fuerza Unida picketed the Levi Strauss headquarters in San Francisco and staged hunger strikes and sit-ins in protest of the company's labor policies.^[10][11][12]

The company took on multi-billion dollar debt in February 1996 to help finance a series of leveraged stock buyouts among family members. Shares in Levi Strauss stock are not publicly traded; the firm is today owned almost entirely by indirect descendants and relatives of Levi Strauss, whose four nephews inherited the San Francisco dry goods firm after their uncle's death in 1902.^[13] Levi's bonds are traded publicly, as are shares of the company's Japan affiliate, Levi Strauss Japan K.K.

In June 1996, the company offered to pay its workers an unusual dividend of up to $750 million in six years' time, having halted an employee stock plan at the time of the internal family buyout. However, the company failed to make cash flow targets, and no worker dividends were paid.^[14] In 2002, Levi Strauss began a close business collaboration with Wal-Mart, producing a special line of "Signature" jeans and other clothes for exclusive sale in Wal-Mart stores until 2006.^[15] Levi Strauss Signature jeans can now be purchased at several stores in the US, Canada and Japan.^[5].

According to the New York Times, Levi Strauss leads the apparel industry in trademark infringement cases, filing nearly 100 lawsuits against competitors since 2001. Most cases center on the alleged imitation of Levi's back pocket double arc stitching pattern (U.S. trademark #1,139,254]).^[16] Levi's has sued Guess?, Esprit Holdings, Zegna, Zumiez and Lucky Brand Jeans, among other companies.^[17]

By 2007, Levi Strauss was again said to be profitable after declining sales in nine of the previous ten years.^[18] Its total annual sales, of just over $4 billion, were $3 billion less than during its peak performance in the mid 1990s.^[19] After more than two decades of family ownership, rumors of a possible public stock offering were floated in the media in July 2007.