C. Wonder is getting a second lease on life.
Xcel Brands Inc. has entered into a definitive agreement to purchase the C. Wonder brand from Burch Acquisition LLC. Details are expected to be disclosed after the transaction closes.
Xcel revealed the acquisition this morning, confirming a report on WWD.com Thursday night.
The purchase gives Xcel the C. Wonder trademarks, related designs and other intellectual property rights.
C. Wonder, founded by J. Christopher Burch in 2011, sold an inexpensive array of women’s clothing, footwear, jewelry, accessories, housewares, home decor and gift-type products and expanded rapidly throughout the U.S, eventually opening 32 stores. In 2013, Burch sold a 10 percent stake in the chain to Fidelity Investments for $35 million, funds that were used to help fuel its growth. Burch spoke of opening hundreds of C. Wonder stores worldwide and last year signed a deal to open units in the Middle East.
But the expansion proved too fast in in January the retailer laid off its employees, eventually closing all its stores and filing for Chapter 11. Burch Acqusition, controlled by Burch, purchased the C. Wonder brand after it went bankrupt to redevelop the business.
Xcel, founded by Robert W. D’Loren in 2011, owns the Isaac Mizrahi, Judith Ripka, H by Halston brands and designs and manages the Liz Claiborne New York brand. It is involved in the design, licensing, marketing and the direct-to-consumer sales of the brands.