Dive Brief:
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Centric Brands and WHP Global on Friday said they have teamed up to buy the Joe's Jeans brand, previously owned by Sequential Brands group. The U.S. Bankruptcy Court for the District Of Delaware has approved the sale for $48.5 million in cash and assumed liabilities, according to court documents.
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Centric already manages design, sourcing and marketing for Joe's Jeans, as well as for brands like Calvin Klein, Tommy Hilfiger, Nautica and Kate Spade, and owns and operates brands including Zac Posen and Hudson. WHP Global is a private equity-backed brand acquisition and management firm whose portfolio includes William Rast, Toys R Us, Anne Klein and Joseph Abboud, per a joint press release.
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While the deal has been approved by the court, it remains subject to customary closing conditions, per the release. The agreement gives WHP the brand's intellectual property in all global territories other than China, while Centric will continue to operate it under a long-term exclusive license for core categories and geographies across retail, wholesale and e-commerce.
Dive Insight:
Despite this change of ownership, Joe's Jeans will probably more or less carry on as before, considering that founder Joe Dahan remains there as creative director and Centric is already managing key aspects of the business.
"We have significantly invested in Joe's Jeans throughout our years of operation and have established the brand as one of the leading premium denim resources," Centric Brands CEO Jason Rabin said in a statement. "Celebrating its 20th year, we look forward to partnering with WHP Global to further develop the brand and new avenues to grow the business."
The new owners plan to extend the brand's assortment and its reach. "Together with Centric, we will look to build upon the core business and expand around the world to new geographies," WHP Global CEO Yehuda Shmidman said in a statement. At the moment, the two decade-old brand is sold through premium department stores in the U.S. and specialty boutiques worldwide, as well as Joe's Jeans 10 stores and website.
Sequential has been dismantling its portfolio throughout its bankruptcy process, most recently unloading a suite of activewear brands to a private equity firm. The conglomerate also sold off Ellen Tracy and Caribbean Joe in August, and Jessica Simpson last week won back her namesake brand.
via https://www.aiupnow.com
Daphne Howland, Khareem Sudlow
