Japanese apparel company acquires LA casualwear label Velvet in $37m deal
Japanese apparel company Adastria announced that it will acquire the LA-based casualwear company Velvet, LLC through subsidiary company Adastria USA, Inc. on April 3, for 37 million dollars (about 4,144 million yen). The Japanese group, which operates 21 brands across Asia, is targeting the North American market with its second investment in the country.
“Velvet will provide a solid platform for Adastria, allowing the company to expand its presence in the North American Market,” said Velvet CEO Henry Hirschowitz. “Furthermore, with Adastria's knowledge in retail and online, we feel strongly that further opportunities for Velvet will materialize. Through the investment, Adastria is targeting the North American apparel market due to positive predictions for future growth.”
In addition to having eight directly-operated stores in the United States and one in the UK, Velvet by Graham and Spencer apparel is also sold in department stores and select shops in the United States and abroad.
“"This latest acquisition allows us to establish a strategic presence in North America and in the world of contemporary fashion, as we seek to transform Adastria into a leading global apparel company,” Adastria COO Masa Matsushita said. "Working together with Velvet's management team, we will accelerate the brand's growth, especially in the direct-to consumer channels."
Adastria also plans to further develop its global brand portfolio through Marine Layer, a San Francisco-headquartered apparel label in which Velvet acquired a minority stake in April 2016.
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