Authentic Brands Group to acquire Vince
Authentic Brands Group has agreed to acquire the intellectual property of the Vince luxury fashion brand.
Through the agreement, Vince Holding Corp’s intellectual property will be transferred to a newly formed Authentic subsidiary, ABG Vince, of which Authentic will own a majority stake of 75%, while Vince Holding Corp will retain 25% ownership.
Vince Holding Corp will also enter into a long-term licensing agreement with Authentic.
Jamie Salter founder, chairman and chief executive of Authentic, said: “We are pleased to bring this luxury lifestyle brand into the fold and partner with the Vince management team on the brand’s next phase of growth.
“The addition of Vince strategically expands Authentic’s portfolio of globally renowned Luxe brands. We see significant opportunities to expand Vince’s offerings to meet the growing demand for premium and luxury goods around the world.”
Established over two decades ago, Vince offers ready-to-wear fashion for women and men through its 60-plus retail stores, wholesale accounts, a newly re-platformed ecommerce site, and a rental subscription service.
Authentic said it will retain Vince’s current store portfolio as it looks ahead to expanding the brand in key luxury markets and categories.
The news coincides with the release of Vince’s release of its fourth quarter results in which it announced that net sales had dropped by 7.8% and that its net loss had widened to $11 million from $2.7 million in the same period the prior year.
Jack Schwefel, chief executive of Vince Holding Corp, said: “We are pleased to partner with Authentic and unlock the great potential there is for the Vince brand “We are confident that with Authentic’s proven know-how in brand building combined with our design and distribution expertise, Vince is poised for long-term growth.”
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