Rachel Roy Gets New Owner
Topson Downs of California is set to acquire a majority stake in the Rachel Roy brand for an undisclosed amount.Topson has reached an agreement with The Jones Group Inc., now owned by private equity firm Sycamore Partners, to acquire its 50 percent stake in the business. As reported, Jones had tried to sell the Rachel Roy business to private equity firm Bluestar Alliance for $14.6 million. Topson is also set to acquire a small stake owned by TSM Capital, which combined with the Jones stake will give Topson majority ownership of the Rachel Roy brand. Rachel Roy along with ex-husband Damon Dash each still own a stake in the business.
In April, Roy filed a lawsuit to stop Jones from selling her business to Bluestar, a move she said was without her consent. The lawsuit, filed in a New York state court in Manhattan, alleged breach of contract. Neither Sycamore nor Bluestar were named as defendants in the suit. Topson will also own the trademarks to the Rachel Roy brand, while the designer Rachel Roy will retain 100 percent creative control of her name. The two will form a partnership to develop the fashion brand Rachel Roy.
Ulta Takes Chance on New Brands
In the last six months alone, Ulta launched Mally Beauty, Karora Cosmetics, Altchek MD skin care, Nails Inc. and Vichy’s Idealia Life Serum. Based on shopper demand, It Cosmetics’ space was expanded within months of its launch in September and Urban Decay’s footage was doubled. With its expanding stable of stores, Ulta is proving attractive as a showcase for up-and-coming lines, as well as mature brands in need of distribution. With 100 more stores opening this year, Ulta is on its stated goal of having 1,200 units in the U.S.
Even as Ulta adds more prestige brands like Clinique, marketers said the retailer has maintained its interest in emerging brands and is willing to give them time to prove themselves. The chain’s buyers are particularly interested in securing a first-to-market exclusive to drive shoppers to their stores. “Even with investors to report to, they don’t toss you out after a few months,” said one supplier. In fact, Ulta helps “tweak” brands they launch as exclusives to help prepare them for further rollout to other retailers.
Diane von Furstenberg’s Term as President Extended
The Council of Fashion Designers of America unanimously voted to extend Diane von Furstenberg’s term as president through 2016 at its board meeting on Thursday. They also ratified the addition of 30 designers to the membership. They are Tim Coppens; Carlos Campos; Jonathan Simkhai; Marc Alary; Paige Novick; Johnny Talbot of Talbot Runhof; Edun’s Danielle Sherman; Veronica Beard’s Veronica Miele Beard and Veronica Swanson Beard; Liya Kebede of Lemlem; Kristy Caylor of Maiyet; Whit’s Whitney Pozgay; Linda Balti of Amour Vert; Arielle Shapiro of Ari Dein; Raan Parton and Shea Parton of Apolis; Ashley Pittman; Ben Burkman and Doug Burkman of Burkman Bros; Selima Design’s Virginie Promeyrat; Clare Vivier; Barbara McReynolds and Gai Gherardi of L.A. Eyeworks; Ernest Sabine of Ernest Alexander; Eva Fehren’s Eva Zuckerman; Jussara Lee; Ulla Johnson; Ruthie Davis; Cynthia Sakai of Vita Fede, and Sharon Khazzam. The new additions bring the CFDA’s total membership to 478.
– Selicia A. Walker
Source & Photo: WWD