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LONDON — As part of an effort to focus its energies on high-end accessories, Labelux has sold the Derek Lam brand to its founders, Lam and Jan-Hendrik Schlottmann.
This story first appeared in the November 8, 2012 issue of WWD. Subscribe Today.
The terms of the deal have not been disclosed.
Labelux acquired a majority stake in Derek Lam International LLC in July 2008, five years after it was founded. The disposal is the first Labelux has made since it was established in 2007 with the mission of becoming a global player in the luxury goods market.
“We have taken a strategic decision to refocus our activity on luxury leather goods and shoes,” said Reinhard Mieck, Labelux chief executive officer.
He said that, going forward, Labelux would concentrate its efforts on providing its “core businesses with the investment, expertise and platforms to pursue their advances into the league of world-class luxury, thereby delivering strong growth synergies and long-term value for the group.”
Lam said he and Schlottmann were pleased to assume sole leadership of the company, which gained solid financial footing from Labelux. “We would like to thank Labelux for its support and strategic guidance over the last four years. Now, we look forward to our continued growth and to the many exciting possibilities ahead of us,” said Lam.
The brand operates as a wholesale business in 15 countries, has two retail stores in New York, and produces four ready-to-wear collections annually.
Since joining Labelux, Derek Lam has expanded into accessories, including shoes, handbags and eyewear. In 2011, the company launched the diffusion line 10 Crosby Derek Lam. Earlier this year, the designer inked a global licensing deal with Schwartz & Benjamin, which will handle design, manufacturing and wholesale for the expanded collection of Derek Lam shoes.
He has also done a limited-edition DesigNation collection for Kohl’s that will go on sale in the spring. Lam served as creative director for Tod’s from 2006 until earlier this year.
Labelux is a division of the private investment vehicle Joh. A. Benckiser, which also owns Coty Inc. Its portfolio includes Jimmy Choo, Bally, Solange Azagury-Partridge, Belstaff and Zagliani.