Jessica Simpson USA Collection Secures $67.5M Term Loan
The new funding will be used to draw down an existing credit facility and provide additional liquidity to fund new growth and a rapidly expanding portfolio, the two entities said in a joint press release.
Second Avenue Capital Partners (SACP), the lending arm of SB360 Capital Partners (SB360), announced the closing of a $67.5 million term loan for The Jessica Simpson Collection, the fashion empire of billion dollar and iconic lifestyle brand inspired and designed in collaboration with Jessica Simpson. It will be used to withdraw an existing credit facility.
“While this facet of our relationship may be new, our experience with Schottenstein goes back to our roots,” said Jessica Simpson, CEO of the Jessica Simpson Collection, a reflection on the long history with the Schottenstein organization. Jessica Simpson launched her label in 2005 under the management of Vince Camuto and the Camuto Group. In 2018, Schottenstein led Designer Brands Group in partnership with Authentic Brands Group to acquire Camuto Group.
In November 2021, Jessica Simpson and her business partner and mother Tina Simpson acquired 100% of the brand. After retaining 37.5% of the brand when Sequential Brands acquired a majority stake in 2015, Jessica, Tina and their team were determined to regain full control of the lifestyle brand they had spent 16 years to develop and build.
After taking full ownership and control, the team immediately embarked on plans to further grow the existing business and expand the brand into new categories with immediate signings in 5 new licensing categories and 5 more in negotiation. The Jessica Simpson collection currently includes 37 product categories, including footwear, apparel, fragrance, luggage, fashion accessories, handbags, jewelry, maternity wear, girls’ wear and home. New projects will include skincare, health and wellness, demi-fine jewelry and furniture.
Aaron Miller, President of SB360, said: “When we were first introduced to Jessica, Tina and the team, we immediately knew this was a perfect fit. It’s impressive to see what the team has accomplished since its recent reacquisition, and we’re excited to provide this funding to further fuel growth. Jessica and Tina have spent years building a hugely successful lifestyle brand by providing customers with a quality product at an affordable price that is suitable for all kinds of women. This creative financing solution is exactly what we envisioned when creating Second Avenue Capital Partners; use our merchant perspective to meet the unique capital needs of retail and consumer businesses. »
Jeffrey Howald, CFO of the Jessica Simpson Collection, shared, “We are delighted with the success of the brand since the acquisition in November 2021, as evidenced by a very strong Q1 2022 where we exceeded Q1 revenue by 15% year over year. . We have also experienced an aggressive expansion of international sales, and we are extremely pleased with welcoming our new potential partners in such a short time since the closing of the brand acquisition.
Mike Sullivan, CEO of the SACPadded: “This is the type of transaction that we are built for. With the Jessica Simpson collection, you have an incredibly successful brand that transcends fame. It is a dynamic founder-led company that can use our capital to fuel the next chapter of its success story. For us, this term loan is part of a much larger relationship, which extends across the entire Schottenstein organization. This is further proof of the impact of the work we do at Second Avenue Capital Partners.
Fibre2Fashion (KD) News Desk