California Apparel News

Victoria’s Secret, the largest lingerie specialty retailer in the United States, will become a privately held retailer, it was announced Feb. 20. Publicly held L Brands, Inc., which acquired Victoria’s Secret in 1983 and is headquartered in Columbus, Ohio, sold a 55 percent interest in the retailer to private-equity firm Sycamore Partners. L Brands will retain 45 percent of the retailer, whose nameplate graces more than 1,000 stores around the world. The total value of the lingerie brand is $1.1 billion. When the transaction is wrapped up, L Brands’ veteran leader, Leslie Wexner, will step down as chairman and chief executive officer. He will serve as chairman emeritus, while Bath & Body Works’ newly appointed CEO, Andrew Meslow, will also lead L Brands as the chief executive and serve on the company’s board. Wexner said that the transaction would restore Victoria’s Secret to its former prestige and profitability. Wexner and the brand had come under heavy criticism in the past few years for not keeping up with fashion and social trends. The brand also was hurt by the scandal of Wexner’s and the company’s association with convicted sex offender Jeffrey Epstein.

ModCloth was acquired by the brand-investment platform Go Global Retail, it was announced Feb. 20. A statement on the deal did not state how much Go Global Retail spent to acquire the indie fashion retailer ModCloth from Walmart Stores Inc. The Tiger Capital Group provided the financing for the acquisition. Bob DeAngelis, Tiger’s executive managing director, said that Go Global Retail would help ModCloth become more competitive. “We saw yet another strong opportunity in Go Global’s acquisition of ModCloth, a digitally native retailer, that has posted annual revenues of up to $150 million and enjoys strong brand equity among consumers,” DeAngelis said.

Gap Inc. said that it would partner with thredUP, the world’s largest resale platform. Gap will encourage its customers to turn in secondhand clothes to thredUP in exchange for credit at Gap Inc.’s stores such as its namesake Gap, Banana Republic, Athleta and Janie and Jack, said Mark Breitbard, president of Gap Inc.’s specialty brands. “As the resale revolution continues to gain momentum, participating in re-commerce is not only good for our planet but good for business,” Breitbard said. “Our customers are diversifying their closets, whether with new clothing, rental pieces or secondhand goods. We’re thrilled to partner with thredUP in offering a sustainable and innovative way to shop for the closet of the future.”

Teva, a division of the Goleta, Calif.–headquartered Deckers brand, announced the launch of the “Strap In To Freedom” campaign. For the campaign, Teva will use recycled plastic in 100 percent of the straps used in its sandals, said Anders Bergstrom, Teva’s general manager. “We are committed to improving our practices and creating product with higher social and environmental standards that minimize our overall environmental impact,” Bergstrom said. “We believe we have an obligation to do our part in creating product that is mindful of the environment, and this is only the beginning. We have a long road ahead but are dedicated to creating a sustainable footprint.”