Done Deals: Berluti Launches on Tmall’s Luxury Pavilion as It Expands Digital Footprint in China + More News
Catch all the latest news about footwear industry acquisitions, and licensing and distribution agreements here. Got a deal in the works? Tell us at [email protected].
Aug. 16, 2022: French luxury menswear brand Berluti is expanding its digital footprint in China by launching on Alibaba Group’s Tmall Luxury Pavilion. During the hard launch, Berluti will offer Tmall shoppers exclusive access to its global debut of Playoff sneakers. “As a crucial step in the brand’s business expansion and digitalization process, we have high hopes for this strategic cooperation with Tmall,” Laurent Barrere, managing director of Berluti in China & Asia Pacific, said in a statement. Part of the LVMH Group, Berluti has been steadily expanding in China, which is on pace to be the world’s largest luxury market by 2025. “Tmall Luxury Pavilion platform has a large number of high-net-worth consumers, as well as young people with a high degree of digitalization,” added Janet Wang, general manager of Tmall Luxury Pavilion.
Aug. 8, 2022: Vista Outdoor Inc. announced today that it has closed its acquisition of Fox Racing, paying a gross purchase price of $540 million, subject to customary closing adjustments. Also, the Vista stated there is potential for an additional $50 million earnout based on the motocross brand’s financial performance. (For calendar year 2022, Vista stated Fox Racing’s full-year net sales and adjusted EBITDA are expected to be approximately $350 million and $55 million, respectively.) The acquisition was financed, Vista said, through a combination of a $600 million asset-based revolving credit facility, which will replace its existing asset-based revolving credit facility, and a $350 million secured term loan facility. Fox Racing CEO Jeffrey McGuane, as well as its current leadership team, will continue to lead the brand. The brand will be added to Vista’s Outdoor Products segment, and will be included in the new Outdoor Products company upon completion of the separation. (Vista announced in May that it will separate its Outdoor Products and Sporting Products segments into two independent, publicly-traded companies.)
July 27, 2022: Mytheresa is expanding its partnership with Vestiaire Collective into the U.S. market. The partnership, which launched a unique resale service for Mytheresa’s high-end luxury customers in June 2021, has already had big success in Europe and is helping drive the fashion industry towards more sustainable practices. The U.S. expansion of the resale program is offering the service to Mytheresa’s top customers in the region, thus increasing the desirable U.S. supply available for Vestiaire Collective members to shop. How it works: Mytheresa’s top customers in the U.S. are invited to participate via a dedicated landing page, where they enter required information, and are given a price quote for their pre-loved item. Once the item arrives at Vestiaire Collective’s U.S. authentication center, and has undergone quality and authentication checks, the Mytheresa customer receives immediate payment in the form of a Mytheresa store credit. A dedicated Mytheresa x Vestiaire Collective team is also available to support customers throughout their listing journey.
July 27, 2022: Neiman Marcus Group (NMG) has opened up a new Global Capabilities Center in Bangalore, India. This center is meant to house the company’s technical talent to help curate customer experiences. The center will hire more than 500 people in the next 8-10 months across technology, advanced data analytics and other business roles. “The company is investing more than $500 million to drive sustainable growth through digital commerce to deepen relationships with our customers in order to make their lives extraordinary,” said Bob Kupbens, chief product and technology officer at NMG.
July 14, 2022: French Connection has inked a new footwear licensing agreement with Sante + Wade. The footwear label will work with French Connection to develop, manufacture, and market its range of women’s shoes with the UK and Europe for the next three years. The first collection will hit stores in spring/summer 2023 and will retail between £80 and £120. “Licensing is an integral part of our business at French Connection,” Amber Fenner, licensing manager at French Connection, said in a statement. To partner with an industry innovator whose ethos and quality align with ours is invaluable to bringing the consumer the best possible product at key price points.” Agnès Cushnie, marketing director for Sante + Wade, added: “Our philosophy is that everyone should have the opportunity to experience beautiful and comfortable shoes, whatever their size. We are delighted to partner with such a prestigious brand with a resounding success in the contemporary market.”
July 12, 2022: New York-based footwear company Josmo Shoe Corp. has signed a licensing deal with MerryMakers Inc. to produce “Pete the Cat” toddler and kids’ shoes. The first collection will deliver in Q1 2023. “The latest designs are bright, innovative and capture what the Pete the Cat stands for: creativity, independence, openness, adventure and grooviness,” said Sammy Esquenazi, owner of Josmo. Pete the Cat is a fictional cartoon cat that was created by American artist James Dean, who launched a four-book series in 2010. The franchise has since grown to a 50-title children’s publishing line from HarperCollins. MerryMakers, which owns the brand, has other licensing agreements for Pete the Cat apparel, bedding, toys and games.
July 11, 2022: Aerosoles has inked a new licensing agreement with Orly Corporation for the distribution of men’s slippers, men’s and ladies flip flops, hanging footwear, men’s socks, and roller skates for men, women and youth. The first collections are scheduled to be launched in summer 2023 and will be available at Nordstrom, Macy’s and other major department and specialty stores to follow. Retail price points for men’s and ladies flip flops, socks and slippers will range from $20 to $50 and roller skates will range from $80 to $150. “This is an exciting time for Aerosoles and we are thrilled to be working with one of the best-in-class companies to further provide a comprehensive product offering to our consumers,” said Alen Mamrout, president and CEO of American Exchange Group, which acquired Aerosoles in January for an undisclosed sum. “As a global lifestyle brand, we are committed to showcasing a cohesive retail presentation, with a wide variety of products for men, women and youth. This is the first licensing partner we have signed since the acquisition and we look forward to partnering with Orly to utilize their expertise, capabilities and expand our consumer base.”
July 8, 2022: Tom Ford is reportedly up for sale, according to Bloomberg. The media outlet said on Thursday that the luxury fashion brand is working with investment bank Goldman Sachs Group Inc. on the effort. According to Bloomberg, a deal could value the company at several billion dollars and may include an option that would give any new owner of Tom Ford the right to work with its founder after the sale. No final decision has been made and Tom Ford could still opt to remain independent. Ford, an Austin, Texas native started his namesake company in 2005, a year after leaving Gucci, which he revitalized during a decade-long stint as creative director.
July 7, 2022: Gap is coming to India. The San Francisco-based company has inked a new partnership agreement with Reliance Retail Limited, India’s largest retailer, to bring the Gap brand to the country. Through the long-term franchise agreement, Reliance Retail has become the official retailer for Gap across all channels in India. Reliance Retail will introduce Gap through a mix of exclusive brand stores, multi-brand store expressions and digital commerce platforms. “We look forward to growing the Gap business across key international markets,” Adrienne Gernand, managing director of international, global licensing and wholesale at Gap Inc., said in a statement. “Partnering with regional experts, like Reliance Retail in India, allows us to deliver our relevant, purpose-driven brand to customers around the globe, while continuing to diversify our business portfolio through our partner-based model.”
July 1, 2022: Wolverine Worldwide has settled a lawsuit with HanesBrands. Under the agreement, Wolverine will sell its Champion trademarks for footwear to HanesBrands for $90 million. However, Wolverine will still be able to use the Champion trademark on specific shoes such as the Keds Champion.
June 30, 2022: Third-generation independent shoe retailer Stan’s Fit for Your Feet has added another store to its roster. The business, which has locations in Brookfield, Glendale and Greenfield, Wis., has purchased Waxberg’s Walk Shoppe in Niles, Ill., a suburb of Chicago. Waxberg’s — also a third-generation retailer founded in 1919 — will continue to operate under its own name, according to Jim Sajdak, president of Stan’s Fit for Your Feet. “We can appreciate the importance of the Waxberg’s brand name in the community, since they’ve established a wonderful heritage over the past 100 years,” he said. “We are also really proud to have their team joining our family in an effort to continue Waxberg’s legacy.” This marks the Sadjak family’s first foray outside the Greater Milwaukee area. In addition to three Stan’s Fit for Your Feet locations, they also operate two New Balance stores and a Vionic branded shop.
June 22, 2022: Autumn Adeigbo found new investors in Hollywood stars Cameron Diaz, Mila Kunis and Gabrielle Union. In 2020, Adeigbo, then a one-woman show, secured $1.3 million of institutional investments. She made headlines as the first eponymous fashion brand led by a female, Black designer to raise more than $1 million in venture capital funding. Then, in September 2021, she secured additional funds of nearly $3 million, led by venture capital firm Offline Ventures, bringing her total investments to more than $4 million. “Personally, it means so much for these women who I have so much respect for, to believe in me,” Adeigbo told FN. “Business-wise, it means the world to us that our brand has incredible support from women who have excelled in their individual illustrious careers in Hollywood, and are also passionate about entrepreneurship.”
June 22, 2022: eBay Inc. has acquired non-fungible token (NFT) marketplace KnownOrigin. The acquisition, according to eBay, is important in its tech-led reimagination, and will help usher in “a new era of digital collecting to the world’s top destination for collectibles.” KnownOrigin, which was founded in 2018, enables people to create, buy and resell NFTs via blockchain-support transactions. eBay began allowing the buying and selling of NFTs in May 2021. The companies signed and closed the deal today, and the details of the deal were not disclosed.