Sequential now plans to grow the Joe’s brand

Sequential now plans to grow the Joe’s brand

The Joe’s jeans brand is being sold to Sequential Brands Group and Hong Kong based Global Brands Group in an $80m deal that will see it join the latter's extensive portfolio of fashion and lifestyle labels.

Proceeds from the transactions will be used to pay off the debt built up by parent Joe’s Jeans Inc, which will change its name to Differential Brands Group.

Sequential Brands, whose other labels include William Rast, Ellen Tracy and Caribbean Joe, is leading the purchase, paying US$67m to acquire the Joe’s brand. Sequential will oversee the global marketing strategy for key brand initiatives, and brand founder Joe Dahan will continue to lead product design and brand marketing as creative director.

In tandem with this, design, production and distribution of products across multiple categories including womenswear and menswear will be assigned to Global Brands – which was spun off by sourcing giant Li & Fung last year as a separate publicly-listed business – under a long-term licensing agreement.

“Denim is trending strongly right now and we are excited about the future growth opportunities for the brand,” says Bruce Rockowitz, CEO and vice chairman of Global Brands Group, adding: “Joe's is an important addition to our brand portfolio in a key fashion category.”

Global Brands Group has over 350 brands designed, licensed or under management. Licensed brands include Quiksilver, Under Armour, Disney and Calvin Klein, while controlled brands are those such as Frye and Juicy Couture.

Yehuda Shmidman, CEO of Sequential, says: “Joe’s is a natural fit for Sequential as the brand seamlessly integrates into our fashion vertical. We believe that we have a winning team in place to grow the Joe’s brand around the world.”

Founded in 2001, the Joe’s lifestyle brand ranges from premium denim to accessories and footwear, and is available in the US and internationally. The first range of Joe’s products produced in collaboration with Global Brands will launch in spring 2016.

Separately, the newly-named Differential Brands Group expects to secure a $50m investment from Tengram Capital Partners to create a new omni-channel, premium branded consumer platform. It will encompass the Hudson and Robert Graham labels, and remain listed on NASDAQ.

Michael Buckley, the current CEO of Robert Graham and former president at True Religion, will lead the company as CEO, and William Sweedler will join as chairman.