The US fashion and media group Authentic Brands Group LLC (ABG) is further expanding its portfolio. The group, which already owns numerous well-known brands such as Reebok, Eddie Bauer, Forever 21, Ted Baker and Aéropostale, announced on Monday that it had secured the intellectual property rights of clothing retailer Vince.
As part of a “strategic partnership”, the previous parent company Vince Holding Corp. to bring all the intellectual property rights of the Vince label into the new joint venture ABG Vince, in which ABG will take a 75 percent majority. Vince Holding will receive the remaining quarter interest in the joint venture and a total of US$76.5 million (€69.4 million) from ABG.
According to the agreement, following the transaction, which is expected to close in the second quarter of this year, Vince Holding will use Vince’s intellectual property rights to distribute the brand for a fee under an initial ten-year licensing partnership with ABG in wholesale and retail.
Vince Holding intends to use the proceeds from the deal that has now been announced to pay down debt and strengthen its capital structure. The company announced that it would remain listed on the stock exchange in the future and that it was not planning any personnel changes in the management bodies.