In the past month, three long-established, designer-led fashion and lifestyle labels whose founders are still active have come under new ownership. These types of deals can help solidify the designers’ future legacy and allow for additional near-term expansion, while allowing the founders to continue doing what they love and maintain a say in how the business is run.
All of the brands are extensively licensed:
- Interior designer Jonathan Adler sold his lifestyle brand in December—the news came out last week—to Consortium Brand Partners, which recently purchased the Draper James and Outdoor Voices labels as well, in association with brand management firm American Exchange Group. The label, which generates close to $150 million annually, encompasses home décor, furniture, and other lifestyle goods. Adler, who launched his first ceramics collection with Barneys New York in 1993, will stay with the brand as chief creative officer. The new owners plan to expand the label’s proprietary store count, which currently stands at 10. They also expect to enter new channels of distribution and add new product categories.
- In late December, Vera Wang sold her label, founded in 1990, to WHP Global. She remains with the company, leading the label’s creative direction and becoming a shareholder of WHP. The deal will give the $700 million-a-year brand the resources to extend into new markets and categories beyond its current core of women’s apparel, bridal goods, men’s suits and tuxedos, home goods, fragrance, and jewelry. Hospitality is one area of potential expansion. Note that this is one of several recent deals involving brand management companies acquiring fashion labels.
- In a deal announced last week, the Christian Lacroix label, launched in 1987, was acquired by Sociedad Textil Leonia, owner of CH Carolina Herrera and other brands. This situation is different from the others in that Lacroix originally sold his namesake label, founded with backing from LMVH, to the Falic Group in 2005, and Lacroix left the label in 2009, when the brand was put into administration and its business streamlined. While Lacroix is active as a designer, focusing on opera costumes and occasional fashion collaborations with the likes of Dries Van Noten, he has not been involved with his namesake brand for two decades. He was told of the acquisition in advance and gave the deal his blessing, according to the fashion trade press, and plans to meet with the new owners informally.
These deals are a subset of a very active current period of M&A within the broader fashion industry.
Look out for the January issue of Raugust Communications’ monthly newsletter next Tuesday, January 21, 2025. The Licensing Topic of the Month will look at recent trends in mergers and acquisitions across the licensing business, while the Datapoint research spotlight will focus on licensing in the personal care category. If you are not yet a subscriber, you can sign up here.
Note also that we will not be posting this coming Monday, January 20, in recognition of the Martin Luther King Jr. federal holiday in the U.S. We’ll be back with new insights on Thursday, January 23.
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