Private equity firm Golden Gate Capital is exploring options, including a possible sale, for its portfolio firm Orchard Brands, which operates a slew of apparel brands sold mostly in direct channels.
Based in Beverly, Mass., Orchard Brands, which generates more than $1.1 billion in annual revenues, is the umbrella firm that owns catalogue and Internet brands including Blair, Haband and Norm Thompson. Two nameplates, Appleseed’s and Draper’s & Damon’s, operate retail locations.
The San Francisco-based private equity firm is said to have hired Moelis & Co. as adviser on its options, including the sale of Orchard Brands. Officials at Moelis and Golden Capital declined comment.
Orchard Brands owes more than $700 million to lenders, according to sources. Golden Gate also owns apparel retailers J. Jill, Eddie Bauer, Express and recently invested in jewelry chain Zale Corp., none of which are part of the Orchard Brands umbrella.
RBC Capital Markets issued a report Monday noting that, with growth prospects limited, firms were on the hunt for acquisitions “to drive investment performance, improve their future prospects, or become part of a larger whole.
“With average M&A premiums exceeding 30 percent over the past several years, we believe owning a basket of compelling takeover targets could be a compelling investment strategy,” the report concluded.
Howard Tubin, RBC’s analyst, wrote that possible takeover candidates include American Eagle Outfitters Inc., Aéropostale Inc. and Christopher & Banks Corp.
• Coldwater Reduces View: Shares of Coldwater Creek Inc. dropped more than 25 percent in after- hours trading Monday after the Sandpoint, Idaho-based specialty retailer reduced its third-quarter guidance. The firm, originally expected to generate earnings of 1 cent to 4 cents a share, now expects a loss of between 14 cents and 19 cents based on a decline in same-store sales of between 18 percent and 21 percent. Dennis Pence, chairman and chief executive officer, said the company had made changes in its merchandising ranks and increased its promotional activity after failing to “offer products that resonated with our customers.” The quarter ends on Oct. 30 and earnings are scheduled to be released on Dec. 1.
• Retail Stocks Sputter: After rising 0.7 percent last week, retail stocks started the new week off with a decline. The S&P Retail Index dropped 2.14 points, or 0.5 percent, to 464.76. Lifted by a stronger-than-expected third-quarter profit at Citigroup Inc. that elevated the financial sector, the Dow Jones Industrial Average finished the day at 11,143.69, up 80.91 points or 0.7 percent. The S&P 500 advanced by the same percentage, gaining 8.52 points to close at 1,184.71.
Breaking News: @louisvuitton's men's artistic director @mrkimjones is leaving the French fashion house after nearly 7 years. Jones joined Louis Vuitton in 2011, following a three year tenure as creative director of British luxury goods brand Alfred Dunhill. Jones is to exit Louis Vuitton after showing his fall 2018 collection for the brand in Paris on Thursday. Read the full exclusive story on WWD.com. Link in bio. #wwdnews #wwdfashion
For men’s fall 2018, @giuseppezanotti drew on elements from streetwear, sport, biker, combat and rock ‘n’ roll. Pictured here are a pair of shoes from the collection, featuring zippers, rhinestones, and silver hardware. Head to WWD.com to see a roundup of the accessories from Milan’s men’s fall 2018 shows. #wwdfashion (📷: Andrea Delb)
To celebrate the 25th anniversary of @ralphlauren’s snowboarding collection, the brand is mining its archives. The iconic brand is reintroducing vintage styles and dropping new designs for a color capsule that will be available in Ralph Lauren stores and @openingceremony on January 25. The capsule will consist of 10 pieces, including the Snow Beach Pullover, pictured here, which is a collector’s item that rapper Raekwon wore in Wu-Tang Clan’s “Can It Be All So Simple” video. #wwdfashion (📷: Tom Gould)
For @rochasofficial’s pre-fall 2018 collection, creative director Alessandro Dell’Acqua channeled the sophisticated and intriguing Catherine Denevue in the film “Belle de Jour.” Polished collarless coats, midi skirts, suits and ’60s graphic motifs were all featured in the collection, adding a sense of discreet luxury. See the rest of the photos on WWD.com #wwdfashion
“We tried to produce clothing of that couture quality, but the most daunting part was that we only had a matter of days [to do it],” said costume designer Lou Eyrich, who recreated Gianni Versace’s iconic looks for @americancrimestoryfx. Eyrich searched online retailers and vintage shops for original pieces from the design house and for @penelopecruzoficial, who plays Donatella Versace. Head to WWD.com to read how she created the Versace world. #wwdfashion
Only three months after her stellar debut catwalk season, @kaiagerber has inked her first big design collaboration –– with @karllagerfeld. The collection blends Lagerfeld’s Parisian chic aesthetic and the model’s signature West Coast casual style via RTW, accessories, footwear and more. The #KarlLagerfeldxKaia collection will launch in September with a series of events. Get all the details on WWD.com. #wwdnews #wwdfashion
Harrods plans to remove the famous statue of Princess Diana and Dodi Al Fayed from the bottom of the Egyptian escalators and hand it back to Mohamed Al-Fayed. “We are very proud to have played our role in celebrating the lives of Diana, Princess of Wales and Dodi Al Fayed at Harrods and to have welcomed people from around the world to visit the memorial for the past 20 years,” said Michael Ward, Harrods managing director. “With the announcement of the new official memorial statue to Diana, Princess of Wales at Kensington Palace, we feel that the time is right to return this memorial to Mr. Al Fayed and for the public to be invited to pay their respects at the palace.” More on the news, with reporting by @loreleimarfil, at WWD.com. #wwdnews