PVH Corp. has entered into an agreement to acquire the licensed Tommy Hilfiger men’s tailored clothing business for North America from Marcraft Clothes, Inc. Marcraft operates the business under license from Tommy Hilfiger Licensing LLC, a wholly owned subsidiary of PVH.
As part of the transaction, PVH will acquire certain assets related to the licensed business and the license agreement would be terminated effective December 31, 2017. PVH intends to consolidate the North America men’s tailored businesses for all of its brands under one partner, Peerless Clothing International, Inc., beginning January 2018.
PVH is moving the license to Peerless in order to consolidate the North America men’s tailored businesses for all of its brands under one partner. The licenses were amended to run through at least December 31, 2022. No other terms were disclosed.
“We have had a long-standing and successful relationship with Peerless, which has been the licensee for our Calvin Klein, Van Heusen, and IZOD brands for several years,” said Emanuel Chirico, chairman and CEO of PVH. “We believe it best serves the needs of our company and brands to have all of the men’s tailored businesses under the direction of one partner and that Peerless is well-positioned to build upon the success to date of the Tommy Hilfiger men’s tailored clothing business.”
Alvin Segal, chairman and CEO of Peerless Clothing International said, “We are pleased and honored that PVH has chosen to have Peerless as its licensee in North America for all its brands for men’s tailored clothing.”
“We are excited to expand our relationship with PVH to include the Tommy Hilfiger brand,” added Ronny Wurtzburger, president of Peerless Clothing International. “We believe that the brand’s rich American heritage and preppy with a twist designs will be a great addition to our offerings under PVH’s brands and will allow us to better serve all of PVH’s businesses and consumer tastes.”