- Kristopher Fraser |
Tailored Brands, Inc. and WHP Global have announced that they have entered into an agreement whereby Tailored Brands will sell the Joseph Abboud trademarks to WHP for 115 million dollars. Tailored Brands has also entered into a licensing agreement with WHP for the exclusive rights to sell and rent Joseph Abboud branded apparel and related merchandise in the U.S. and Canada.
“The Joseph Abboud brand has played and will continue to play an important role in the assortment at our retail brands and we look forward to our new partnership with WHP and to the next phase of our relationship with the designer Joseph Abboud,” said Tailored Brands president and CEO, Dinesh Lathi, in a statement. “This transaction allows us to unlock value in the Joseph Abboud trademarks through an experienced partner that will focus on building the brand through international and category expansion. We plan to use the proceeds from the transaction for debt repayment, which will strengthen our balance sheet and provide additional financial flexibility to invest in our customer-facing transformation strategies.”
Joseph Abboud sold to WHP for 115 million dollars
In a statement, WHP Global CEO Yehuda Shmidman added, “With over 30 years of heritage, the Joseph Abboud brand has cemented its position as one of the most established and trusted brands in fashion. We are excited to have the opportunity to invest in the next chapter of growth for the brand in close partnership with Dinesh and his team at Tailored Brands, and around the world with current and future partners.”
WHP Global is a New York based brand acquisition and management firm backed by funds managed by Oaktree Capital Management, L.P. and with financing from BlackRock. Following the close of the transaction announced today, WHP will have over 1.4 billion dollars in retail sales across its portfolio of brands including Anne Klein and Joseph Abboud.
In a statement, the designer Joseph Abboud, who will be leaving Tailored Brands at the end of January to pursue new opportunities in the global fashion community, said, “I want to thank Tailored Brands for our partnership over the past eight years. We’ve accomplished a great deal together as we’ve built one of the leading menswear brands in the U.S. and Canada.”
Tailored Brands will continue to own and operate the factory in New Bedford, Massachusetts, that manufactures quality U.S. made tailored clothing. The agreement is expected to close by the end of March, subject to satisfaction of certain closing conditions.
PJ SOLOMON served as financial advisor to Tailored Brands on the transaction and Ferdinand IP Law Group served as legal advisor. Pryor Cashman LLP and Kirkland & Ellis LLP served as legal advisors to WHP Global.
photo: courtesy of Purple PR