Ralph Lauren is to sell its Club Monaco brand to global private equity firm Regent, LP as the US fashion company increases its focus on its core namesake brands.
Announced today (13 May), the deal comes after Ralph Lauren outlined a ‘Fiscal 2021 Strategic Realignment Plan’ last year that would accelerate its ‘Next Great Chapter Plan’, which was first announced in 2018.
Included in this realignment was an evaluation of the company’s brand portfolio, with a focus on ensuring its core brands are well-positioned for sustainable growth. The sale of Club Monaco to Regent, combined with the licensing of the Chaps brand last year, concludes this portfolio evaluation.
“For the past twenty-two years, Club Monaco has been an important and valued part of the Ralph Lauren family, and we are grateful for the many contributions the brand and its team have made to our company,” said CEO Patrice Louvet.
“As we increase our focus on our core namesake brands, we want to ensure the Club Monaco brand is also well-positioned for long-term success. We are confident that Regent is the right home for Club Monaco to realise its full potential, as they will be able to leverage their strategic and operational expertise to continue Club Monaco’s growth.”
Michael Reinstein, chairman of Regent, added Club Monaco has a long runway for growth, with the firm seeing a tremendous opportunity for the brand.
The transaction, the terms of which were not disclosed, is expected to close by the end of June.