Citizens of Humanity Acquires Goldschmied's Label, Laundry
Huntington Park, Calif.–based premium-denim maker Citizens of Humanity has acquired denim veteran Adriano Goldschmied’s premium-denim brand, GoldSign, and Laundry Atelier, Goldschmied’s laundry and laboratory.
The deal, which has been cast as a partnership between old friends, puts money behind the GoldSign brand and brings a big design talent to Citizens, which is looking to expand well beyond premium denim, said Jerome Dahan, who launched Citizens in 2003. “I’ve known Adriano for a long time, and I really believe in his talent. The timing was right. We were looking to strengthen Citizens, add categories of product and build the team. Adding Adriano to the company seemed the perfect fit,” Dahan said.
The deal will give Citizens the use of the Laundry Atelier to develop proprietary processes that will help it stay nimble in the premiumdenim market, which is feeling squeezed as fashion turns toward other fabrications. Goldschmied will continue to head his brand but joins Citizens as partner and executive vice president of product development, working alongside Dahan. Adriano will also be designing a full men’s collection for Citizens, which will debut for Fall 2008, though Dahan hints that a capsule of Citizens’ more-sportswear-focused collection will be available for Spring 2008.
The pair is betting the one-two punch of Goldschmied’s denim know-how and Dahan’s resources will propel both brands to new heights. The duo estimates their combined wholesale business will grow $30 million from 2007 to 2008. In 2006, Citizens’ annual sales reached $90 million. In 2007 its sales and those of GoldSign since the acquisition are estimated to reach $120 million. Next year the two brands’ wholesale business is expected to reach $150 million.
Financial terms of the acquisition were not released, but the company did confirm that Berkshire Partners, an equity firm based in Boston that bought a 62.5 percent interest in Citizens last year, retains a majority stake in the new combined company. Dahan and Goldschmied are minority stake holders.
Goldschmied, who has designed for everyone from Diesel to The Gap, launched Gold- Sign and the Laundry in 2005 in Los Angeles after selling his portion of his eponymous line, AG Adriano Goldschmied, to a partner. Citizens and GoldSign will consolidate some back-office staff, but the design teams for both brands will remain independent, Dahan said. Goldschmied will relocate GoldSign’s offices to Citizens’ offices as part of the merger. —Erin Barajas
