Fashion Investments and M&A

Date: June 2024
Buyer: Haatch
Target: Social Tip
Business: Social media engagement app
Value: £600k
Details: Social Tip, a new venture from BrewDog founder James Watt, has received a £600k investment from Haatch as part of a seed funding round. Social Tip is an app which allows its users to become “influencers” and monetise their posts recommending brands, with the profit per post being determined by likes, comments and other engagement, and aims to use word-of-mouth recommendation posts as an alternative to traditional paid advertising. PureGym, Huel and Dash Water have all signed up to the platform, ahead of its imminent launch.

Date: June 2024
Buyer: Revolve
Target: Alexandre Vautier
Business: Haute couture brand
Value: Undisclosed
Details: Revolve, the US-based online retailer, has acquired French haute couture brand Alexandre Vautier (“AV”) out of administration for an undisclosed sum. Like many luxury brands, AV has struggled with the global slowdown in the luxury market, as well as late payments from its stockists, and went into administration in February 2024. The acquisition will mark a change to Revolve’s existing portfolio, which largely includes fast fashion brands, and focuses on online sales instead of brick and mortar stores. The deal is thought to keep the jobs of AV’s 29 employees safe, and includes a €6million investment by Revolve into AV over a 3 year period.

Date: June 2024
Buyer: H&M Group, TPG
Target: Syre
Business: Textile recycling
Value: $100million
Details: Syre, a Swedish textile recycling company, has received a $100million investment as part of a Series A funding round from H&M Group and TPG Rise Climate. Syre was founded by H&M in March 2024 with an initial $60million capital, as a means of producing recycled polyester (expanding to other materials in the future) as a means of combatting emissions within the fashion industry. Co-investors included Giant Ventures and Norssken VS, Volvo Cars and Imas Foundation. Syre intends to use the investment to construct its own recycling plant in the US later this year.

Date: June 2024
Buyer: Authentic Brands Group
Target: Champion
Business: Sportswear brand
Value: $1.2billion
Details: Authentic Brands Group (“ABG”) has acquired US sportswear and athleisure brand Champion for an estimated $1.2billion from HanesBrands Inc. The acquisition increases ABG’s existing portfolio of sports and lifestyle brands, including Billabong, Reebok, and Roxy. Subject to regulatory approval, the acquisition is expected to be finalised in the second half of 2024.

Date: May 2024
Buyer: The Brand Group
Target: Roksanda
Business: Luxury womenswear brand
Value: Undisclosed
Details: The Brand Group has acquired London-based luxury womenswear brand Roksanda from the newly-appointed joint administrators of the company, as part of a rescue deal for an undisclosed amount. The acquisition follows a winding up petition filed against the company by one of its creditors in the Business and Property Courts of the High Court on 9 April 2024, and the company’s formal appointment of the joint administrators on 10 May 2024, as a result of “recent volatile market conditions”. Roksanda Ilincic MBE founded the eponymous label in 2005, and it has been a firm favourite at London Fashion Week shows over the years since then. Roksanda Ilincic will remain as the brand’s creative director going forward, and it is understood that the acquisition has protected the jobs of the brand’s employees.

Date: May 2024
Buyer: Nadja Swarovski
Target: Really Wild Clothing
Business: Womenswear brand
Value: Undisclosed
Details: Nadja Swarovski (whose family created the Swarovski jewellery brand) has acquired a majority shareholding in British womenswear brand, Really Wild Clothing, along with her husband, Rupert Adams. Nadja Swarovski spent 26 years working for the Swarovski jewellery business, becoming CEO and Creative Director of the brand, as well as being the first female member on the company’s executive board. As part of the acquisition, Nadja Swarovski will become Chief Creative Officer, Chief Marketing Officer and Chairwoman of Really Wild Clothing’s board; Rupert Adams will become Managing Director; and existing shareholders Gabriela Luksic and Florence Newman will continue working for the business, along with the brand’s founder, Natalie Lake. Founded in 2002, Really Wild Clothing is a women’s fashion and lifestyle brand that focusses on tailored garments inspired by countryside pursuits, and is known for its tweed pieces.

Date: April 2024
Buyer: Alven
Target: Carbonfact
Business: Carbon management and reporting tool
Value: $15million
Details: Carbonfact, a carbon management and regulator reporting tool for fashion businesses based in Paris, has completed a $15m Seed A funding round led by existing investor, Alven (a backer of French fashion brand, Sézane), with Y Combinator and Headline joining as co-investors. Carbonfact helps fashion brands to fulfil their regulatory reporting obligations by automating the collection of emissions data required for making these reports, as well as automating the report submission process itself - in turn, helping brands to measure and reduce the emissions generated by their products. The fashion industry generates up to 10% of annual global carbon emissions, and Carbonfact’s goal is to de-carbonise the fashion industry by helping brands identify ways in which to reduce their own carbon emissions. Notable Carbonfact customers include Carhartt, Maison Maes, Columbia and New Balance.

Date: May 2024
Buyer: Frasers Group
Target: Boohoo
Business: Women’s fashion e-tailer
Value: Undisclosed
Details: Frasers Group (owner of Sports Direct, Flannels, House of Fraser and Jack Wills), has again subscribed for shares in Boohoo, taking its current stake in the business from 22.08% (February 2024) to 23.10%. Since October 2023, Frasers Group has been the largest shareholder in Boohoo, and continues its strategy of increasing its shareholding incrementally every few months.

Date: April 2024
Buyer: Mirabaud Lifestyle, Impact & Innovation Fund, D1 Capital Partners, JAM Fund
Target: Sparxell
Business: Plant-based textile pigments
Value: £2.5million
Details: Sparxell, a business founded in 2022 by University of Cambridge scientists Dr Bejamin Droguet and Professor Silvia Vignolini, has received £2.5million in a seed funding round. The round was led by Circular Innovation Fund, a venture capital fund managed by L’Oreal Cycle Capital and Demeter. Fellow investors included Future Communities Capital (an investor in SpaceX), PDS Ventures, Katapult, Joyance Partners and SNØCAP VC. Sparxell works to create vibrant colour pigments using fully plant-based cellulose, a renewable, biodegradable resource that can be extracted from waste streams. The resulting product is toxin-free and fully biodegradable, with Dr Droguet stating that “our plant-based materials can be grown and sourced locally in a complete rethink of how colours are currently being manufactured while reducing transport emissions”, compared to traditional chemical colourants that cause “major environmental harm”. Sparxell’s products can then be used in the fashion industry through textile colouring, embellishments and sequins, once it completes a further Series A funding round later this year.

Date: April 2024
Buyer: Frasers Group
Target: Matches Fashion
Business: Women’s fashion retailer
Value: Undisclosed
Details: Frasers Group has purchased certain IP assets from Matches Fashion (“Matches”) out of administration for an undisclosed sum. Frasers acquired Matches from Apax Partners for £52million in December 2023, and subsequently placed Matches into administration in March 2024, appointing Teneo as the administrators. Currently, Matches’ administrators estimate that the business has £36million owed to unsecured creditors, which include many of the luxury brands stocked in Matches’ stores and website, and currently has over £80million worth of stock. Frasers’ acquisition is limited strictly to Matches’ IP (said to be intangible items, including the Matches trademark, domain names and databases of the Matches store), and does not include the stock or remaining employees, which remain under the administrators’ control.