Milly is checking its options.
The contemporary brand is said to be struggling with a cash crunch and slower sales and is in talks with multiple potential investors, according to several sources.
One source familiar with the process said at least one of the buyers was “nontraditional.” That’s in keeping with general trends in the dealmaking market, where many of the usual buyers for fashion brands have been burned by deals in the past and are steering clear of them or being very choosy.
It’s an opportunity that’s brought some new names to the sector, for instance, Mudrick Capital Management, a distressed-debt specialist that last year took a stake in Proenza Schouler.
Milly was founded by creative director Michelle Smith and her husband and brand president Andrew Oshrin in 2001. But the two are now said to be in the midst of a divorce, complicating the picture at the company.
There have been several warning signs from the company this year.
Milly opted not to stage a runway show during New York Fashion Week in February. It was also sued in New York state court last month by public relations and marketing specialist HL Group, which claimed it was owed $113,000 in retainer and consulting fees from 2018.
Milly did not respond to WWD queries.