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Pic: Authentic Brands Group / Eddie Bauer Authentic Brands Group (ABG), a global brand owner, marketing and entertainment company, and SPARC Group, a leading retail enterprise, have announced a definitive agreement to purchase Eddie Bauer, the iconic American outdoor brand, from PSEB Group, an operating company owned by Golden Gate Capital, a San Francisco-based private equity investment firm.
As per the agreement, ABG will own Eddie Bauer’s intellectual property and the brand’s core operating business will become a part of the SPARC portfolio of brands. Following the close of the transaction, SPARC’s operating platform will include Eddie Bauer, Brooks Brothers, Lucky Brand, Nautica, Aéropostale and Forever 21, which collectively generate nearly $8.6 billion in systemwide retail sales annually.
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Simon Property, Authentic Brands To Acquire Eddie Bauer
The acquisition is being made by Authentic and SPARC Group, a venture backed by Authentic and Simon. The partnership also owns Aéropostale, Forever 21 and Brooks Brothers.
The partners didn t disclose how much they paid for Eddie Bauer, which has about 300 stores in North America, fewer than the 370 it had when Golden Gate acquired it. Eddie Bauer operates several stores in Simon malls.
The new owners plan to keep Eddie Bauer s headquarters in Seattle, and its president, Damien Huang, will remain in that post.
As a retail category, outdoor gear, especially clothing, has sold relatively well during the coronavirus pandemic, as Americans sought diversion from the crisis, Bloomberg reports. In February, Kohl s sought to capitalize on the trend by forming a partnership with Eddie Bauer to sell the brand s outdoor apparel at as many as 500 Kohl s locations.
Authentic Brands and Simon Buy Eddie Bauer
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Authentic Brands Group LLC and the largest U.S. mall operator agreed to buy outdoor clothing and gear merchant
Eddie Bauer, adding another well-known brand to a portfolio of retail names.
Shoppers hold Eddie Bauer bags.
Authentic and
SPARC Group LLC are acquiring Eddie Bauer, including its 300 stores and e-commerce business, from a unit of
Golden Gate Capital, according to a statement. SPARC is a joint venture between Authentic and
Simon Property Group. Terms weren’t disclosed.
The purchase is the latest in a series of retail deals for Simon and Authentic, which once restricted itself to buying just brands rather than brick and mortar presence. They teamed up last year to purchase
Dive Brief:
Sparc Group, the entity formed by mall REIT Simon Property Group and brand management firm Authentic Brands Group, has struck a deal to acquire Eddie Bauer for an undisclosed amount, the companies said Friday.
The acquisition is expected to close by June 1, subject to standard closing conditions, including antitrust considerations in the U.S. and Canada, per an emailed press release.
PSEB Group, which has been running Eddie Bauer and PacSun, the same day announced a leadership shuffle. PacSun President Alfred Chang and PSEB Group Interim CEO Michael Relich will serve as co-chief executive officers, and PacSun Chief Brand Officer Brieane Olson will be promoted to president, per a company press release.