Latest news with #AuthenticBrands
Hindustan Times
27-05-2025
- Business
- Hindustan Times
Liberated Brands, owner of Quicksilver, Billabong, and Volcom, shuts stores and files for bankruptcy
Liberated Brands, a licensee of the global leader in apparel Authentic Brands, filed for Chapter 11 bankruptcy in February 2025. It held licenses to several brands under the Authentic Brands group such as Quiksilver, Billabong, Roxy, RVCA, Honolua, and Boardriders in North America along with wholesale licenses for Billabong and RCVA. In December last year, Authentic terminated Liberated's license rights for Volcom, RCVA, and Billabong following the company's failure to pay royalties. The company filed for bankruptcy soon after stating that the decision meant to 'implement an orderly monetization and disposition of its businesses. The company has been in the process of transitioning its brand licenses to new license holders as part of a management transition to ensure continuity for the brands and their success moving forward'. The licenses to the brands in question were soon transitioned to "new, well-capitalized partners who are actively investing in their growth and long-term success'. Liberated previously underwent a spike in revenue from $350 million in 2021 to $422 million in 2022 according to CEO Todd Hymel. He credited the sharp increase on demand during COVID-19 along with the acquisition of more brand licenses during that period as reasons for this growth. However, as interest rates began to rise following the end of the pandemic, demand for the company's products slipped drastically. There were hopes that Liberated would be able to regain its footing in the last 18 months but this was hampered by consumer interest shifting towards fast fashion instead. 'The average consumer has shifted their spending away from discretionary products such as those offered by Liberated,' Hymel said, as reported by Bloomberg. The traditional seasonal retail model found it difficult to keep up with the micro trend-oriented model followed by these new houses which produced larger quantities at lower prices. 'Consumers can cheaply, quickly, and easily order low-quality clothing garments from fast fashion powerhouses and have such goods delivered within days,' Hymel added. Rise in interest rates, inflation, supply chain delays, and decline in customer demand were some of the macroeconomic issues faced by the company which were referred to as 'significant liquidity challenges in 2024' by Hymel. On the occasion of a partner being unable to oblige their commitments, Authentic's executive vice president of action and outdoor sports and lifestyle, David Brooks feels that the company can then transition the agreement to others in the network. 'Liberated's U.S. store fleet was overinflated, burdened with outdated and underperforming locations. As a result, physical U.S.-based stores will likely be rationalized, allowing the brands to create more value and strengthen their presence across specialty retailers, department stores, and e-commerce — ensuring a more agile and resilient future,' he added. While filing for bankruptcy, Liberated expected to keep its stores open to sell off the last of its stock. "Through the filing of customary motions with the Court, Liberated intends to uphold its commitments to customers, employees, and partners, including continued payment of employee wages and benefits. The Chapter 11 process will be financed by JP Morgan," the company shared. The company's liquidation sale process suffered a problem however when its expected proceed did not match its going-out-of-business sales. The $65 million earned from the sale of assets did not cover the amount to its creditor- JP Morgan. This development led a judge to dismiss the bankruptcy filing. Matthew Fagen, the Kirkland & Ellis LLP restructuring partner representing Liberated at the court hearing said, 'What that means, your honor, is that based on the amount of value collected and the amount of value that we expect to be collected, there will not be enough proceeds, unfortunately, to pay the DIP (Debtor-in-Possession) claim in full or to pay the adequate protection claim for the ABL lenders in full.' The company still needs to collect $27 million from the $65 million it has generated. A shortfall of $22.1 million in DIP claims and $5 million of ABL adequate protection claims is expected. An objection from one of the company's creditors led the judge to grant dismissal. All remaining funds will go to JP Morgan while none of the remaining creditors will be paid.
CNBC
22-05-2025
- Business
- CNBC
Authentic Brands CEO on acquisition of Levi Strauss' Dockers
Jamie Salter, Authentic Brands CEO, joins CNBC's 'Squawk on the Street; to discuss the company's acquisition of Dockers, expectations for future deal making, whether the company plans to go public, and more.
Washington Post
20-05-2025
- Business
- Washington Post
Levi Strauss agrees to sell Casual Friday staple Dockers for up to $391 million
NEW YORK — Levi Strauss is set to finally part ways with Dockers — inking a deal to sell its brand once credited with propelling the popularity of 'Casual Fridays' to Authentic Brands Group. In an announcement Tuesday, the denim giant said it had agreed to sell Dockers to Authentic for up to $391 million. The transaction will start at an initial value of $311 million, with the potential of adding another $80 million to the price tag based on business performance under the new ownership.
Business of Fashion
24-04-2025
- Business
- Business of Fashion
Authentic Brands Group Weighs Rival Bid for Guess?
Authentic Brands Group Inc. is considering launching a rival takeover bid for American clothing company Guess? Inc., people familiar with the matter said. New York-based Authentic Brands is working on a potential offer that would counter the $13-a-share cash proposal that Guess received in March from WHP Global, according to the people. Shares of Guess surged as much as 26 percent on Thursday. The stock was up 17 percent at $11.635 at 3:27 p.m. in New York, giving the company a market value of about $603 million. Deliberations are ongoing and no final decisions have been made, the people said, asking not to be identified discussing confidential information. A representative for Authentic Brands declined to comment. A spokesperson for Guess couldn't immediately be reached for comment. Guess said in a statement last month that it had formed a special committee of independent and disinterested directors to evaluate WHP Global's offer, which would see some existing shareholders, including founders Paul Marciano and Maurice Marciano, roll over their stakes. Solomon Partners and Willkie Farr & Gallagher are advising the special committee. Founded in 1981 by the Mariano brothers, Guess' products include denim, handbags and shoes. In February, the company teamed up with WHP Global to acquire the fashion brand rag & bone. Authentic Brands is led by Chief Executive Officer Jamie Salter. Its stable of brands and intellectual properties includes Champion, Reebok and Forever 21. Bloomberg News reported earlier this year that an investor group including CVC Capital Partners, General Atlantic, HPS Investment Partners and Leonard Green & Partners is in talks to buy BlackRock Inc.'s stake in Authentic Brands. By Vinicy Chan, Crystal Tse and Eliza Ronalds-Hannon Learn more: Apparel Retailer Guess Gets Take-Private Offer From WHP Global Guess, whose shares jumped over 30 percent in early trading on Monday, has formed a special committee to evaluate the proposal, though the deal isn't guaranteed.
Fashion Network
24-04-2025
- Business
- Fashion Network
Authentic Brands Group weighs rival bid for Guess
Authentic Brands Group Inc. is considering launching a rival takeover bid for American clothing company Guess Inc., people familiar with the matter said. New York-based Authentic Brands is working on a potential offer that would counter the $13-a-share cash proposal that Guess received in March from WHP Global, according to the people. Shares of Guess were trading at $10.50 at 2:35 p.m. in New York on Thursday, giving the company a market value of about $544 million. The stock surged following the WHP bid. Deliberations are ongoing and no final decisions have been made, the people said, asking not to be identified discussing confidential information. A representative for Authentic Brands declined to comment. A spokesperson for Guess couldn't immediately be reached for comment. Guess said in a statement last month that it had formed a special committee of independent and disinterested directors to evaluate WHP Global's offer, which would see some existing shareholders, including founders Paul Marciano and Maurice Marciano, roll over their stakes. Solomon Partners and Willkie Farr & Gallagher are advising the special committee. Founded in 1981 by the Mariano brothers, Guess' products include denim, handbags and shoes. In February, the company teamed up with WHP Global to acquire the fashion brand rag & bone. Authentic Brands is led by Chief Executive Officer Jamie Salter. Its stable of brands and intellectual properties includes Champion, Reebok and Forever 21. Bloomberg News reported earlier this year that an investor group including CVC Capital Partners, General Atlantic, HPS Investment Partners and Leonard Green & Partners is in talks to buy BlackRock Inc.'s stake in Authentic Brands.
