JOE BOXER SOLD, BUT GRAHAM KEEPS STAKE
Byline: Vicki M. Young
NEW YORK — Joe Boxer Corp. has been sold, but founder Nicholas Graham will retain an equity interest in the new firm.
Bill Sweedler, president of Westport, Conn.-based Windsong/Allegiance Apparel Group, said Friday that his firm has signed an agreement to purchase the operating assets, trademarks and trade names of Joe Boxer Corp. The deal is expected to close within two weeks.
Terms of the deal were not disclosed, but Sweedler said that Graham does retain an equity stake in the new company, which will be known as Joe Boxer. In addition, “Nick has a substantial long-term employment agreement with the company,” he said.
Sweedler will become chief executive officer of Joe Boxer. John Short, the newly named present ceo of Boxer, will stay on for at least six months to wind down the old operation. “We have not discussed any future role with John. Our focus has been on completing the transaction,” Sweedler said.
He added that upon the closing of the acquisition, his firm will provide Van Mar with a “settlement” of its claim against Joe Boxer. As reported, Van Mar in December obtained a $3.15 million judgment against Boxer, but the issue had been centered on Joe Boxer’s ability to pay.
Graham said in a statement: “The Joe Boxer brand is one of the most powerful brands in the country, and this new relationship with Allegiance will help me to explode the brand even further.”
Product design and development, marketing and licensing will continue out of Joe Boxer’s existing San Francisco office, while sales will continue to be driven from its New York showrooms and around the country. Operations and administrative services, however, will be conducted out of new headquarters in Westport.
Sweedler said that his firm is currently working with Joe Boxer’s management team. “We want to do this without a hiccup in retail. We are working on getting the goods off the dock from the existing entity so that we can flow the goods immediately into the stores.”