Troubled Joe’s Jeans has reached an agreement to be sold.
In the first transaction, it will sell its Joe’s brand to Sequential Brands Group for $67 million. There is also a strategic partnership between Sequential and Global Brands Group. The aggregate value of the Sequential deal plus the licensing partnership with Global Brands is $80 million. Global Brands will handle the sourcing and production of product for the Joe’s brand. The two transactions for Joe’s is expected to close by Sept. 30.
Separately, the Hudson Clothing business of Joe’s Jeans will merge with RG Parent LLC, the parent company of the Robert Graham brand. Tengram Capital Partners, an investor in Sequential, is the controlling owner of Robert Graham. Tengram’s William Sweedler will become chairman of the merged firm. It will invest $50 million to recapitalize the business. The merger is expected to be completed in the fourth quarter.
Joe’s is expected to undergo a name change when Hudson Clothing merges with Tengram’s Robert Graham business. The name of the new firm is Differential Brands Group. The company will remain a publicly traded firm on the Nasdaq.
The founder of Joe’s Jeans, Joe Dahan, who is also it’s creative director, will stay with the brand and join Sequential.
Hudson was sold by Fireman Capital Partners to Joe’s Jeans in 2013. Both Fireman and Kim are shareholders of Joe’s. According to Sweedler, Peter Kim, Hudson’s founder, will oversee Hudson’s operations.
Michael Buckley, chief executive officer of Robert Graham, is expected to remain ceo of the merged firm and head up both the Robert Graham and Hudson brands.
Joe’s Jeans Inc. was founded in 1987 and is based in Commerce, Calif. The company has wholesale and retail operations, as well as online retail sites joesjeans.com and hudsonjeans.com. It was formerly known as Innovo Group Inc., and changed its name to Joe’s Jeans in October 2007.