Tailored Brands sells rights to Joseph Abboud; designer to exit
Tailored Brands is selling the Joseph Abboud trademarks to a brand acquisition firm for $115 million.
The menswear retailer said it will sell the Joseph Abboud trademarks to New York-based brand acquisition and management firm WHP for $115 million. It has also 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, whose banners include Men's Wearhouse, Jos. A. Bank, Joseph Abboud, Moores Clothing for Men and K&G. “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."
Tailored Brands also said that the designer Joseph Abboud will be leaving the company at the end of January to pursue new opportunities in the global fashion community. Tailored Brands acquired the designer label in 2013 for $97.3 million.
"I want to thank Tailored Brands for our partnership over the past eight years,” said Abboud. “We’ve accomplished a great deal together as we’ve built one of the leading menswear brands in the U.S. and Canada."
Tailored Brands will continue to own and operate the factory in New Bedford, Massachusetts, that manufactures quality U.S. made tailored clothing. The agreement is expected to close by the end of March, subject to satisfaction of certain closing conditions.
WHP Global is backed by funds managed by Oaktree Capital Management, L.P. and with financing from BlackRock. Following the close of the transaction, WHP will have over $1.4 billion in retail sales across its portfolio of brands including Anne Klein and Joseph Abboud.