WHP Global has struck a deal to acquire the Vera Wang brand, looking to expand the fashion designer's brick-and-mortar retail footprint and to potentially explore new real estate sectors for the business.
New York-based WHP Global, which revived the Toys R Us chain, on Monday said it had struck a deal to acquire the intellectual property of the Vera Wang company. Wang, a native New Yorker, started her business in 1990 when she opened her flagship bridal salon at the Carlyle Hotel at 991 Madison Ave. in Manhattan. She now has stores around the world, with licensing deals for a wide array of merchandise at other outlets, including clothing at Kohl's and jewelry at Jared — all in addition to dressing celebrities. The company generates $700 million in annual sales.
Financial terms of the transaction, which is expected to close next month, were not disclosed. But Wang will continue in her role as founder and chief creative officer of the label and will become a WHP Global shareholder.
Vera Wang will join WHP Global's growing portfolio of consumer brands, collectively generating over $7 billion in global sales, with many of them operating physical stores. Earlier this year, the company acquired apparel seller Rag & Bone, which has dozens of namesake retail locations internationally. In June, WHP Global partnered with three mall landlords to bail Express, the troubled mall-centric chain, out of bankruptcy.
And, after acquiring the IP of the defunct retailer Toys R Us in March 2021, WHP Global resurrected the chain with standalone stores as well as shop-in-shop locations at Macy's. WHP Global will give Vera Wang the financial wherewithal for faster growth and a further dive into being a lifestyle brand, according to at least one retail analyst.
New categories, markets
"WHP Global's forward-thinking approach perfectly aligns with my vision for the future," Wang said in a statement. "Together, we will push boundaries, exploring bold opportunities to expand into new categories and markets, all while staying true to the legacy of timeless sophistication and the distinctive style that defines Vera Wang."
WHP Global and Vera Wang didn't respond to emails from CoStar News seeking comment. But Wang was interviewed by Vogue Business about the deal with WHP Global.
"With the partnership, Wang says her primary focus is to expand geographically, mainly in China, where she has seven stores already, as well as in the Middle East and Latin America — all opportunities she identified but said she couldn’t move on herself," Vogue Business reported. "There’s also potential hotels, condos and 'experience businesses' she plans to explore to build out her lifestyle portfolio."
Vera Wang's store fleet includes flagships at 9536 Wilshire Blvd. in Beverly Hills, California, as well as Hong Kong.
A lifestyle brand
"The deal gives WHP another fashion asset that it can integrate into its extensive portfolio," Neil Saunders, a retail analyst and managing director at analytics firm GlobalData, said in an email to CoStar News. "The firm has been growing its premium offering of late, and Vera Wang helps with that effort."
And "with the backing of WHP, Vera Wang could undertake more expansion both in the U.S. and internationally," according to Saunders.
"I suspect WHP and Vera Wang have a vision to drive the brand into more of a lifestyle offering," he said. "In terms of stores, there is scope to add more Vera Wang physical shops, but I suspect expansion here will be gentle."
WHP Global is backed by Oaktree Capital Management, Ares Management and BlackRock.
"Vera Wang is a legend," Yehuda Shmidman, chairman and CEO of WHP Global, said in a statement. "Her name is synonymous with modernity, artistry and impeccable style. We are honored to partner with Vera Wang and look forward to building on the brand's remarkable legacy with new business opportunities around the world."
For the record
Solomon Partners acted as financial adviser to Vera Wang.