Japanese company Fast Retailing will acquire a majority stake in Los Angeles-based fashion company J Brand.
Fast Retailing will acquire 80.1 per cent stake in J Brand from Star Avenue Capital and J Brand’s management. The transaction is expected to close by the end of this month.
J Brand is a contemporary fashion company which focuses in men’s and women’s apparel, particularly in the denim category. Equity firm Star Avenue Capital acquired a controlling interest in the company in 2010.
Founded in 2005 by CEO Jeff Rudes, J Brand sells products in over 2000 specialty boutiques and luxury retailers in more than 20 countries worldwide. The company reported net sales of approximately US$124 million (approximately 10 billion yen) for the year ended December 2011.
Uniqlo owner Fast Retailing aims to extend its brand portfolio and expand its presence further in the US market, hence, the acquisition of J Brand.
“Our planned acquisition will extend the group’s brand portfolio among the affordable luxury apparel category and strengthen our group’s capability in the denim category,” said Tadashi Yanai, chairman, president and CEO of Fast Retailing.
J Brand CEO Jeff Rudes said the brand’s proposed partnership with Fast Retailing has the potential to generate great expansion opportunities in all major markets around the world.
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