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Vince Holding Corp. Announces Closing of Transaction and Entry Into Transformative Strategic Partnership With Authentic Brands Group
NEW YORK--(BUSINESS WIRE)-- Vince Holding Corp., (NYSE: VNCE) (“VNCE” or the “Company”), a global contemporary retailer, today announced that it has
About this update from Vince Holding Corp.
[{"type":"text","content":" NEW YORK--(BUSINESS WIRE)--\nVince Holding Corp., (NYSE: VNCE) (“VNCE” or the “Company”), a global contemporary retailer, today announced that it has completed the previously announced transaction (“Authentic Transaction”) with Authentic Brands Group (“Authentic”), a global brand development, marketing and entertainment platform. As part of the transaction, VNCE and Authentic have entered a strategic arrangement whereby VNCE has contributed its intellectual property to a newly formed Authentic subsidiary (“ABG Vince”) for total consideration to Vince of $76.5 million in cash from Authentic and 25% membership interest in ABG Vince. Authentic owns the majority stake of 75% membership interest in ABG Vince.\n\n\n“We are pleased to have successfully closed this transaction with Authentic marking a transformative milestone for Vince,” said Jack Schwefel, Chief Executive Officer of VNCE. “With the proceeds from this transaction, we strengthened our financial foundation by repaying in full the outstanding balance of $27.7 million under our Term Loan Credit Facility as well as a portion of the outstanding borrowings under our Revolving Credit Facility. With a stronger balance sheet in place, we are now better positioned to enhance our focus on driving margin expansion and executing against our strategic growth initiatives.”\n\n\n\"We are thrilled to officially welcome Vince into the Authentic fold. Together with the visionary expertise of the Vince team, we are poised for the brand's category and global expansion,\" said Jamie Salter, Founder, Chairman and CEO of Authentic. \"We look forward to engaging with new brand fans as we capture audiences, broaden the brand’s range and enter this next phase of Vince’s growth.”\n\n\nIn connection with the Authentic Transaction, VNCE has entered into an exclusive, long-term license agreement (the “License Agreement”) with Authentic for usage of the contributed intellectual property for VNCE’s existing business in a manner consistent with the Company’s current wholesale, retail and e-commerce operations. The License Agreement contains an initial ten-year term and eight ten-year renewal options allowing VNCE to renew the agreement.\n\n\nConcurrent with the close of the Authentic Transaction, the amendment that VNCE previously entered into with its ABL facility has become effective. The amendment ad...