Challenges and upheavals for fashion giants after takeovers and bankruptcies

From stalled merger attempts to widespread bankruptcies, 2024 has been a roller coaster ride for brands of all kinds. FashionUnited takes a look at what’s on the horizon as this year’s biggest stories continue to play out in 2025.

Head to head: fashion giants master turbulent market

A major merger at Saks and Neiman Marcus

Given the slowing demand in the luxury segment, the coming together of industry giants is not surprising, but it likely helped accelerate the long-discussed merger process between Neiman Marcus and Saks. The latter confirmed in the summer its plans for a $2.56 billion takeover of the US department store chain and outlined its intention to create a new real estate-focused business unit with a portfolio of luxury retailers, called ” Saks Global.” Progress was made in early December when it was reported that Hudson’s Bay Company, Saks’ Canadian parent company, had issued a five-year bond to finance the acquisition. Later, on Christmas Eve, it was announced that Saks Global had officially completed the acquisition.

It remains to be seen how Saks Global will ultimately be received. At its core is the mission to provide luxury consumers with a more advanced shopping experience, with access to a wider range, personalized transactions and support for both established and emerging brands. The role of the investors involved in the merger is also unclear. While Amazon was confirmed to work on innovation on behalf of customers and brand partners, key players such as Authentic Brands Group, G-III Apparel Group and Salesforce were also named as equity investors.

The consequences of the Tapestry Capri debacle

A development this year that cast doubt on the merger of the two retail giants was the result of a similar attempt by luxury groups Tapestry and Capri Holdings. The two companies planned to initiate an $8.5 billion merger earlier this year, but were stopped by a lawsuit from a U.S. regulator that raised concerns about market competition. Despite arguing “competitive pressures” and “brand fatigue,” the takeover was blocked on the grounds that their merger could “reduce competition” or “create a monopoly.”

Following the rejection of the proposed merger, industry experts expected a major setback in future deals of a similar nature. However, for the two companies involved, the blockage has forced a reassessment. At Capri, this has already led to new leadership for Michael Kors, while the Versace and Jimmy Choo brands are reportedly up for sale. Tapestry, on the other hand, has continued to “perform above average” financially, so a setback is not yet foreseeable.

Boohoo and Frasers battle for dominance

While they were already fighting for representation on the boards of Hugo Boss and Mulberry, it was Frasers Group’s pursuit of a seat at Boohoo Group that captivated the industry conversation in the second half of the year. This was largely due to the very public dispute between the two parties, who sent each other open letters to put pressure on the other side.

However, the result of the tie was that Boohoo shareholders rejected Frasers’ proposed board candidates, including the group’s founder, Mike Ashley. In the latest development, Frasers said it would continue to seek representation and put forward a suitable candidate to achieve this, suggesting this saga is not yet over.

In the shadow of bankruptcy: what are the status of these brands?

Ted Baker

The year got off to an admittedly difficult start for British retailer Ted Baker, as it filed for bankruptcy and eventually disappeared from high streets around the world. It was the result of a combination of problems spanning many years, from mismanagement to declining demand. However, in August, parent company Authentic Brands Group appeared to have regained some size and began making new arrangements to maintain a presence in key markets. PDS Group then took over Ted Baker’s wholesale rights and relaunched this division in the UK and Europe. What will become of stationary retail remains to be seen.

Scotch & Soda

While 2023 seemingly marked a fresh start for Dutch brand Scotch & Soda following widespread bankruptcy, things began to turn around in mid-2024. The company’s European retail organization filed for bankruptcy, calling into question the leadership of its current owner, U.S. firm Bluestar Alliance. It was something of a balancing act, however, as the brand returned to brick-and-mortar stores in the UK around the same time. Some international agencies also took control of certain subsidiaries of the retailer, so it was planned to return to some regions. Where the brand will go next has not yet been decided.

esprit

If any brand had a truly turbulent year, it was Esprit. What started as profit warnings soon turned into bankruptcy filings at one subsidiary, then another, then another. A comprehensive restructuring and switch to a licensing model followed before the rights to the brand were finally sold to the British investor Alteri. A relaunch was underway, but what exactly this will look like has not yet taken public shape. And while this news seemed to spark optimism, in October Esprit’s US wholesale and retail subsidiaries finally began to falter and filed for bankruptcy. The future of the US textile business remains uncertain.

Farfetch’s New Guards Group

In early 2024, the future of once-struggling luxury retailer Farfetch was secured when new owner, South Korean company Coupang, completed the takeover. The company later outlined its intentions for the British online retailer, which revolved around eventually bringing Farfetch’s luxury e-commerce business to the fore. While this presented a positive outlook for Farfetch, the future of its subsidiaries was uncertain.

Concern was particularly directed at New Guards Group (NGG), the Farfetch-owned parent company of Palm Angels and Ambush. And it seemed like that concern was justified. The group filed for bankruptcy in Italy in November, and although this allows NGG to remain active, this has led partners to cut ties. Authentic Brands Group, for example, terminated a distribution deal with NGG for Reebok, claiming the company owed it around $300 million in royalties.

One interested party to take over NGG, Style Capital, is said to have considered taking over the group, but such a deal has not yet materialized. Other interested parties have not identified themselves.