G-III Apparel Group said Monday it has increased investment in All We Wear Group (AWWG), which owns the brands Pepe Jeans London, Hackett and Facconable. The previously disclosed strategic partnership, revealed in June, was for an ownership stake of 12 percent, which has now increased to about 19 percent.
As reported in June, the stake was expected to grow to 20 percent over the next month or so, and G-III has the opportunity to buy the company outright, significantly bolstering its international presence and adding some 500 stores to its business.
Madrid-based AWWG, which is owned by MI Group, L Catterton and founder Carlos Ortega, is a leading platform for international brands and generates over $650 million in revenues across over 3,500 points of sale in over 86 countries.
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As part of the previously disclosed agreement, the group has become the official agent for DKNY, Donna Karan and Karl Lagerfeld across Spain and Portugal, as the company seeks to maximize its European growth opportunity. G-III also plans to leverage AWWG’s presence in India, one of the fastest growing fashion markets in the world, to expand its key brands, led by DKNY. In turn, AWWG will benefit from G-III’s operations in North America to expand its footprint in that market.
“We are pleased to expand our investment in AWWG and strongly believe this partnership is another growth opportunity for our business. This transaction reinforces our strategic priorities and we look forward to further developing our relationship with AWWG and its talented team as we accelerate our collective businesses,” said Morris Goldfarb, chairman and chief executive officer of G-III.
When the deal was disclosed last month, Goldfarb told WWD, “This collaboration is serious. It’s not only distributing our brands throughout Iberia [which includes Spain and Portugal], it is also collaborating and bringing Pepe, Hackett and Façonnable to the U.S. and parts of the world where they are not penetrated.”
