Fashion showroom Tomorrow London receives £15m investment

By

Cajsa Lykke Carlson

Published
Jan 19, 2016

Three Hills Capital Partners, a financial investment house, has announced a £15m investment into fashion showroom Tomorrow London Ltd.

Three Hills calls Tomorrow, which has showrooms in London, Milan and Paris, "one of the most prominent sales platforms for both established and emerging brands in the fashion industry." Tomorrow London launched in 2008 and now represents 50 brands globally. Last year its EBITDA reached in excess of £3m, and the company's target is to more than double in the next 5 years.

The showroom recently signed a global distribution agreement with Tommy Hilfiger, which gave Tomorrow the exclusive global distribution rights for Hilfiger Collection, the Tommy Hilfiger premium line for women. Tomorrow is focusing on expanding its women's business globally and the Hilfiger partnership, which will see Tomorrow present Hilfiger Collection in London, Milan, Paris and New York during the respective fashion weeks, is a major step in the right direction. The Three Hills investment will also help Tomorrow to continue attracting big names.

Tomorrow has both a marketing and promotion service and a logistics and distribution centre, as well as a set of permanent and periodically leased showrooms. Three Hills Capital Partners' investment will be made via a preferred equity instrument and enable Tomorrow's management, who currently own 50%, to buy out the remaining shareholders.

Stefano Martinetto, CEO and controlling shareholder of Tomorrow London  Ltd., commented: “I am delighted to have the THCP team on board for the next exciting step at Tomorrow. THCP and I have been talking about the changing land scape in the unconsolidated Wholesale Distributions and Sales business in fashion and how to tackle the massive opportunity we see in scaling up and adding services to the industry. I am equally happy about what we achieved in such a short period of time thanks to the constant and inspiring exchange of thoughts with my partners Giancarlo Simiri, Matt Clark, Jens Grede, Erik Torstenson along the others. Indeed I am glad they decided to retain a minority stake in the business.”

Mauro Moretti, founder and Managing Partner of Three Hills Capital Partners, commented:  “We are excited to back Tomorrow’s management team in the next phase of growth of their business. We believe the company has been able to gain a unique competitive positioning in the fashion industry thanks to its ability to source successful brands, its geographical footprint and the innovative way it covers the full value chain. Once again, THCP has delivered a tailor-made capital structure solution in an off-market deal.”