Posts tagged with "Rag & Bone will operate as an independent fashion brand under the Guess portfolio"

February 21, 2024

Guess Inc. and WHP Global have reached a definitive agreement to acquire Rag & Bone, reports Fashion Dive.

Founded in 1981, Guess is clothing copy best-known for its denim jeans and fashion accessories. WHP Global’s brand portfolio generates approximately $4 billion in annual retail sales, and includes Joe’s Jeans, Anne Klein, Joseph Abboud, Lotto, and Toys“R”Us.

Under the deal, Guess will pay $56.5 million to acquire Rag & Bone’s operating assets; while Guess and WHP will both own Rag & Bone’s intellectual property through a joint venture. Guess and the joint venture will enter a licensing agreement, which gives Guess the exclusive right to use Rag & Bone’s intellectual property (IP) to manufacture Rag & Bone products worldwide and sell products in specified territories in exchange for Guess’ payment of a royalty fee.

Rag & Bone will operate as an independent fashion brand under the Guess portfolio. The deal is expected to close during the first quarter of Guess’ 2025 fiscal year.

The deal also includes a potential earnout in which Guess will be responsible for up to $12.8 million, based on Rag & Bone’s sales performance over the course of its 2024 fiscal year.

Rag & Bone, which was founded in 2002, will continue to be based in New York. It operates 34 stores in the U.S.A. and two in the U.K. and is also available in boutiques and department stores and through e-commerce, per the release. In 2023, the brand reported approximately $250 million in revenue.

The acquisition of Rag & Bone brings another denim brand to WHP’s fashion holdings (as well as to Guess). Last year, it acquired a majority interest in G-Star Raw.

Research contact: @fashiondive