Teen retailer Delia’s has inked a deal to sell its CCS brand to Foot Locker Inc. for $102 million in cash.
CCS is a direct-to-consumer retailer that sells skateboards and related apparel, footwear and accessories through catalogues and the Internet. Annual revenues are expected to exceed $80 million, said Foot Locker on Monday.
“The impending purchase of CCS is in line with one of our strategic priorities — pursuing the acquisition of athletic footwear and apparel retailers that are compatible with our existing portfolio of businesses,” stated Matthew Serra, chairman and chief executive officer of Foot Locker Inc.
The acquisition should afford Foot Locker synergies with its existing Footlocker.com/Eastbay operation.
The deal is expected to close within the next 60 days, and is subject to certain closing adjustments and review under the Hart-Scott-Rodino Antitrust Improvements Act.
“This was an opportunity for Delia’s to strengthen their balance sheet,” said Gilbert Harrison, chairman of Financo Inc., which advised the teen retailer. “In this crazy period of time, it is more important to allow them to focus on the growth of their core Delia’s and Alloy brands.
“The customer is one that Foot Locker has always targeted and totally fits in with Foot Locker’s and Matt Serra’s ideal of focusing on growing areas of the footwear marketplace,” he added.
In connection with the sale, Delia’s entered into separate agreements with Alloy Inc. to acquire from Alloy certain intellectual property assets used specifically in the CCS businessthat will be transferred to Foot Locker at closing. Alloy previously owned the Delia’s, Alloy, and CCS brands until the spin-off of Delia’s in December 2005.
Robert Bernard, ceo of Delia’s, said the company will “continue to prudently manage our business and carefully allocate our capital so that we may best position our company for long-term, sustainable growth.… In the coming months, we plan to fine-tune our long-term business strategy and expansion plans as we evaluate the level of our progress in our Delia’s brand initiatives, the strength of and outlook for overall consumer demand, and the real estate opportunities available to us in this market.”
Supermodel @helenachristensen teamed up with longtime friend and designer @camillastaerk on a joint @paredeyewear collaboration. The lineup features three styles and 11 offerings, all of which embody a vintage feel. Get all the details on how they celebrated the collab on WWD.com. #wwdaccessories #wwdeye (📷: @slovekinpics)
“It’s a hard industry to keep motivated, as well, so finding different subjects and people is what makes it worth it – when you’re like, oh, I’ve met great people, I feel like I’ve done something good, and I feel proud of having done this,” said French actress Stacy Martin on being grateful for the variety of roles she’s take on. Read @ktauer’s full interview with Martin on her her latest film “Godard Mon Amour.” #wwdeye (📷: @danieldorsa)
After showing in front of the Eiffel Tower for his last two women’s ready-to-wear collection, it looks like @anthonyvaccarello may be heading to the Big Apple. Sources say the designer will stage his next @ysl show in NYC on June 6. Get all the details on WWD.com. #wwdnews #wwdfashion (📷: @aitorrosasphoto)
EXCLUSIVE: Two and half months after John Targon, cofounder and codesigner of Baja East, was hired as creative director of the contemporary division at Marc Jacobs, he has left the company, WWD has learned. Marc Jacobs International, which is owned by LVMH Moët Hennessy Louis Vuitton, confirmed Targon’s departure in a statement: “John Targon is a talented designer and we appreciate the work he has done here. Ultimately working together did not make sense for the brand and we wish him the best.” Read the story by @jessiredale, link in bio. #wwdnews
@theluxurycollection is officially launching a collection, tapping Sofia Sanchez de Betak for the capsule. Over 30 styles will be featured in the Chufy x The Luxury Collection, debuting next month at Bergdorf Goodman, The Webster, FiveStory and more. De Betak, known as “@chufy,” drew inspiration for the collection from her trips to Japan in the past year #wwdfashion
@lhd, founder and CEO of @thewebster, has teamed up with @lebonmarcherivegauche for the European launch of her ready-to-wear line, LHD. The launch will come with an exclusive pop-up opening today that’s set to run through May 20. Located on the second floor, it carries her debut Miami-themed resort collection, launched in November as see-now-buy-now. #wwdfashion