It’s business as usual for M3/Relativity, the fashion division of Beverly Hills-based entertainment company Relativity, despite flux at the parent firm.
“We have experienced tremendous growth across M3 this year and are very excited for what is next,” said an M3 spokesman.
Relativity, a film, television and digital studio, failed to meet a May 31 debt payment, but received an extension that ensures liquidity going forward. A Relativity spokesman said Monday, “Today the company and its lenders have entered into a formal agreement that allows Relativity additional time to close its previously agreed upon financing transaction. This forbearance agreement ensures Relativity additional liquidity as discussions continue. Ryan Kavanaugh, chief executive officer, and Relativity are deeply appreciative of its lenders’ ongoing support, and the company looks forward to continuing to work with its lenders to position us for long-term success.”
M3 was formed in September 2013 by three former Creative Artists Agency and Ford Model executives: Mitch Grossbach, Matthew Hunt and Martin Dolfi. Grossbach, who was the founder and head of CAA’s fashion department and is M3’s president. The firm assists clients across fashion, beauty, style and creative design, while also leveraging the resources and intellectual property and capabilities of Relativity’s entertainment business. Another part of the firm’s objective is to act as an accelerator to help build young brands and to invest in fashion firms.
Mark Weber, former chairman and ceo of Donna Karan International Inc., and ceo of LVMH Inc. in the U.S., joined M3/Relativity last year as a strategic adviser.
“Working with the incredible team at M3 for nearly a year now has been a great experience. With a strong leadership group in place and an amazing roster of clients, they have a tremendous amount of momentum and opportunity to continue building their business,” he said.
Kimberly Ovitz, the former fashion designer who joined M3 full-time in May 2014 as director of business development, is no longer with the firm. She left in March. She had focused on fashion-retail-tech investments, business development, fund-raising, growth strategies, deal sourcing and creative consulting. In August, Ovitz told WWD her plan was to have investments in 10 to 12 fashion firms under the M3 umbrella. She couldn’t be reached for comment on Thursday.
M3, which employs nine people, became affiliated with Relativity Media 21 months ago. During the first half of this year, the company has closed more than a dozen distinct deals/transactions. One deal is building and operating the BeastMode brand, in partnership with Relativity Sports client Seattle Seahawks’ Marshawn Lynch. As reported, last year M3 added designer Christopher Bevans to its ranks. Bevans was previously a member of the Nike design team, as well as creative director of Pharrell Williams’ Billionaire’s Boys Club brand. Bevans leads the design efforts around M3’s brand-building and development team. At present, M3 has three shows in development with Relativity Media’s television division, including one with Refinery 29, a strategic partnership forged last year.