Done Deal: Tailored Brands sells Joseph Abboud brand
The parent company of Men's Wearhouse, Jos. A. Bank and other menswear banners has sold its designer label.
Tailored Brands announced that it has closed the sale of the Joseph Abboud trademarks to WHP Global for $115 million. The retailer acquired the designer label in 2013 for $97.3 million. (Designer Joseph Abboud, who served as chief creative officer for Tailored Brands, left the company at the end of January to pursue new opportunities in the global fashion community.)
In conjunction with the sale, Tailored Brands entered into a licensing agreement with WHP for the exclusive rights to sell and rent Joseph Abboud branded apparel and related merchandise in the U.S. and Canada.
"This transaction allows us to unlock value in the Joseph Abboud trademarks through an experienced partner that will focus on building the brand through international and category expansion, said Dinesh Lathi, CEO, Tailored Brands, when the deal was announced in January. “We plan to use the proceeds from the transaction for debt repayment, which will strengthen our balance sheet and provide additional financial flexibility to invest in our customer-facing transformation strategies."