Vince Holdings says it will use the proceeds from the new partnership with Authentic Brands Group to strengthen its overall liquidity position and increase its working capital.
Jack Schwefel, CEO of Vince said: “We are pleased to enter into this transformative partnership with Authentic which will provide us with the necessary capital to strengthen our balance sheet allowing for opportunities to enhance our focus on driving margin expansion and focusing on our strategic growth initiatives including leveraging our enhanced e-commerce capabilities and CDP platform, expanding our international presence, growing our men’s business and selectively opening new retail doors in the US. Through this strategic partnership, we will also benefit from leveraging Authentic’s expertise and Lifestyle and Entertainment platforms, which provide opportunities to grow the Vince brand into adjacent categories and territories.”
Jamie Salter, founder, chairman and CEO of Authentic, added: “We are excited to partner with Jack and the Vince management team as we expect to mutually benefit from the strength of the Vince brand that has been developed over the past 20 years. The addition of another luxury brand to our formidable portfolio is timely as we see demand for luxury goods growing in key markets around the world.”
Vince Holdings will remain a publicly-traded entity and continue its existing operations with no changes to management or board of directors composition.
The transaction is expected to close within the second quarter of calendar 2023 and is subject to customary closing conditions.
Earlier this month Authentic Brands Group (ABG) signed a definitive agreement to purchase Boardriders as it looks to diversify its portfolio.