At the end of last month, Iconix Brand Group reported that it was selling The Sharper Image to ThreeSixty Group. The announcement offers a good opportunity to take a look at the recent activities of the major investment companies that have become such a strong presence in licensing, especially in the fashion, luxury, corporate brand, and celebrity sectors.
Since new management took over early last year, Iconix has been reviewing its portfolio to focus on its largest and strongest properties and is using the funds gained from selling its brands to lower its debt. In addition to divesting The Sharper Image, which it acquired in 2011, Iconix dealt the Badgley Mischka luxury designer label, purchased in 2004, to the latter’s footwear licensee, Titan Industries, earlier in 2016. It has said it is considering shopping a few other brands as well.
Of the investment players heavily involved in licensing, Iconix continues to maintain the largest IP portfolio, overseeing 30 brands. The roster includes properties from the worlds of home goods (Cannon, Fieldcrest, Waverly), fashion (Marc Ecko, Ed Hardy, Joe Boxer, Mossimo, Candie’s), sportswear and sporting goods (Starter, Umbro, Pony), and character licensing (Peanuts, Strawberry Shortcake).
While Iconix is divesting, other leading players have continued to acquire new IP in the last year. Bluestar Alliance, for example, formed Bebe Licensing, a joint venture with Bebe Stores that plans to expand the Bebe brand globally through licensing. It also took a stake in the Michael Bastian luxury menswear label. Bluestar currently oversees 17 brands, including Limited Too, Nanette Lepore, Catherine Malandrino, English Laundry, Hervé Benard, Kensie, Yak Pak, and Bell + Howell. In the past, it has had ownership positions in Ron Chereskin, Liz Lange Maternity, and The Sharper Image.
Authentic Brands Group has made the news lately for its interest in newly defunct retailer American Apparel, before the latter’s sale to a Canadian company, Gildan Activewear, this month. Last fall, ABG partnered with General Growth Properties and Simon Property Group to purchase Aéropostale, reopening 500 previously shuttered stores. It also formed a strategic partnership with Julius Irving, following a similar deal forged in December 2015 with Shaquille O’Neal. ABG currently owns and/or manages 28 brands, including Tapout, Frederick’s of Hollywood, Jones New York, Spyder, Tretorn, Thalia, Marilyn Monroe, Mohammad Ali, and Elvis Presley.
Sequential Brands Group’s activities in 2016 included purchasing the yoga and wellness brand Gaiam and immediately signing two licensees (Fit for Life for hard goods and fitness equipment and High Life for athleisure and yoga apparel). Sequential controls 12 brands including Jessica Simpson, William Rast, Ellen Tracy, And 1, Avia, Martha Stewart, and Emeril.
Another key IP investor is Xcel Brands. Its properties include Isaac Mizrahi, Judith Ripka, some Halston brand assets, and its most recent acquisition, retailer C. Wonder, added to its roster in 2015.
It is the nature of the investment business for brands in individual company portfolios to come and go as market conditions and financial and strategic objectives evolve. On balance, however, it is likely that investment companies such as these will continue to add brands, especially from the struggling retail sector, as they see opportunities to strengthen or rejuvenate them through licensing.
This Wednesday, January 25, 2017, at noon U.S. Eastern time, Karen Raugust will join Clair Frederick, president of Merrymakers Inc., to present a LIMA webinar called “Members Only E-Commerce: Maximizing Sales and Awareness Through Flash Sales, Subscription Boxes, and Meal Kit Services.” The webinar is open to all and free for LIMA members. Register here. The hour-long session will include brand-new research from Raugust Communications, an overview of the key trends and players in this e-commerce niche, and a case study about how MerryMakers, a plush licensee and licensing agent for Pete the Cat, works with Zulily.
Comments are closed.