Hong Kong and New York–Sequential Brands Group, Inc. announced today that it has signed a definitive agreement to acquire the struggling Joe’s brand for approximately $67 million. In addition, the deal, which still must receive regulatory approval, includes the signing of a long-term licensing agreement for all of the brand’s core categories with Global Brands Group Holding Limited, one of the world’s leading branded apparel, footwear, fashion accessories, and lifestyle product companies. The long-term licensing agreement will become effective upon closing of the acquisition.
Best known for its Joe’s Jean, Joe’s defaulted on two loans last November, and began looking at a sale as part of a larger restructuring plan. Those financial missteps, which traced back to its acquisition of Los Angeles-based Hudson Clothing in 2013, “earned it a place on Mergers & Acquisitions’ Most Distressed Company Watch List. Joe’s ultimately defaulted on nearly $90 million in debt used to purchase its one-time blue-jeans rival,” The New York Business Journal noted.
Robert Graham Picks Up Hudson Brand
In a separate deal, private equity-backed fashion label Robert Graham is picking up Joe’s subsidiary Hudson, another jeans maker that Joe’s had acquired in 2013. Together the two deals total $80 million.
Under the licensing agreement, Global Brands will design, produce, and distribute products across multiple categories including womenswear and menswear. Sequential will oversee the global marketing strategy for key brand initiatives. Brand founder Joe Dahan will continue to lead product design and brand marketing as creative director.
“Joe’s is a natural fit for Sequential as the brand seamlessly integrates into our fashion vertical,” Sequential CEO Yehuda Shmidman said in a release. “In addition, with a strategic global licensing partnership secured with Global Brands and Joe Dahan’s renewed commitment to the brand’s future, we believe that all together, we have a winning team in place to grow the Joe’s brand around the world
The first range of Joe’s products produced in collaboration with Global Brands will launch in Spring 2016.