Tailored Brands has reached an agreement with WHP Global to sell the Joseph Abboud trademarks to WHP for $115 million.
The parent company of Men’s Wearhouse has also entered into a licensing agreement with WHP for the exclusive rights to sell and rent Joseph Abboud branded apparel and related merchandise in the U.S. and Canada.
The designer Joseph Abboud, who will be leaving Tailored Brands at the end of January to pursue new opportunities in the global fashion community said, “I want to thank Tailored Brands for our partnership over the past eight years. We’ve accomplished a great deal together as we’ve built one of the leading menswear brands in the U.S. and Canada.”
Tailored Brands will continue to own and operate the Abboud tailored clothing factory in New Bedford, Massachusetts. The agreement is expected to close by the end of March, subject to certain closing conditions.
“The Joseph Abboud brand has played and will continue to play an important role in the assortment at our retail brands and we look forward to our new partnership with WHP and to the next phase of our relationship with the designer Joseph Abboud,” said Dinesh Lathi, president and CEO of Tailored Brands. “This transaction allows us to unlock value in the Joseph Abboud trademarks through an experienced partner that will focus on building the brand through international and category expansion. We plan to use the proceeds from the transaction for debt repayment, which will strengthen our balance sheet and provide additional financial flexibility to invest in our customer-facing transformation strategies.”
“With over 30 years of heritage, the Joseph Abboud brand has cemented its position as one of the most established and trusted brands in fashion,” added Yehuda Shmidman, CEO of WHP Global. “We are excited to have the opportunity to invest in the next chapter of growth for the brand in close partnership with Dinesh and his team at Tailored Brands, and around the world with current and future partners.”
WHP Global is a New York-based brand acquisition and management firm backed by funds managed by Oaktree Capital Management, L.P. and with financing from BlackRock. Following the close of the transaction announced today, WHP will have over $1.4 billion in retail sales across its portfolio of brands including Anne Klein and Joseph Abboud.