US fashion group Guess is reportedly about to exit the New York Stock Exchange (NYSE), nearly 30 years after listing. The group, owner of the Guess, Guess Jeans, Marciano and Rag & Bone labels, announced it has received an offer for the purchase of a majority of its shares by US investment firm WHP Global on Monday March 17.
Guess could soon exit NYSE – Guess
According to a press release from Guess, WHP Global, which bought Dutch denim brand G-Star in 2023, has put forward “a non-binding proposal to acquire through its subsidiary WHP Investments the outstanding Guess shares at $13.00 per share, with the exception of the shares held by some existing shareholders, including Paul Marciano, Maurice Marciano and Guess CEO Carlos Alberini.”
The Marciano brothers, who moved to the USA from France in the late 1970s, founded Guess in 1981 in California as a denim label. In time, Guess made a name for itself thanks to its glam collections and high-impact advertising campaigns, especially in the 1990s and 2000s.
For the fiscal year ended on February 4, 2024, Guess reported net sales of $2.77 billion, and an operating profit of $263 million. Guess is listed on NYSE, where its share price peaked on October 17, 2007, at $50.38. After losing ground in the following decade, the group’s share price plummeted during the Covid-19 pandemic, and has bounced back since then.
The share price for Guess was $9.70 at the latest market close in New York. WHP Global’s offer is therefore equivalent to a 34% premium, valuing the Los Angeles-based company at nearly half a billion dollars, and enabling it to exit the stock market. The fiscal 2023-24 results report indicated that Paul and Maurice Marciano held a 46% stake in the group, which directly operates more than 1,000 stores worldwide, plus nearly another 550 operated with retail partners.
In its press release, Guess said it has set up an independent committee to analyse WHP Global’s bid. The two groups began to collaborate more closely last year, when WHP Global partnered with Guess in the acquisition of premium New York denim brand Rag & Bone. On Friday, Guess and WHP Global said they had signed an accessories license deal with the Signal group, a long-standing partner of Guess.
Michael Kors announced on Tuesday the launch of its Amazon storefront, expanding its digital retail presence in the U.S.
Michael Kors launches Amazon storefront. – Michael Kors
The move marks the first time that Michael Kors handbags, ready-to-wear, and accessories will be available directly from the brand through Amazon.
The new storefront immerses shoppers in the brand’s signature jet-set lifestyle, through campaign videos and imagery that transport fans to exotic destinations. An ‘About Us’ page highlights the brand’s history, while behind-the-scenes content and notes from designer Michael Kors add an exclusive touch to the shopping experience.
The Michael Kors Amazon store features dedicated sections for women’s ready-to-wear, handbags, men’s clothing and accessories, footwear, sunglasses, and watches.
To celebrate the launch, designer Michael Kors and actor-musician Suki Waterhouse, who stars in the brand’s newly released Spring 2025 campaign, will host a private dinner for influencers and press at Aman New York.
Michael Kors equally operates digital flagships across North America, Europe and Asia, offering customers a seamless omni-channel experience.
If you can’t beat them join them. That’s the strategy behind saving the Forever 21 name as the last remaining stores are shuttered and the brand pursues a model that is similar to its online competitors.
Forever 21
US Bankruptcy Judge Mary Walrath gave the company temporary permission on Tuesday to start going-out-of business sales at all of its 354 stores while managers try to find a last-second rescuer for part of the 41-year-old clothing chain.
Forever 21 has “had advanced discussions with third parties” about rescuing part of the chain, company attorney Andrew L. Magaziner said during the court hearing. The situation “remains fluid.”
Since the 1980s, Forever 21 stores have attracted droves of young women by selling low-cost, trendy clothing. But the company was undone by the rising cost of inventory and wages and competition from online retailers, like Temu and Shein that can skirt import duties and tariffs by shipping goods directly to consumers, the company said in court papers.
It’s the company’s second bankruptcy and the latest brick-and-mortar store to fold in a wave of closures over the past decade or so. The pace of failures picked up during the pandemic as malls closed, and buyers turned to online sellers during lockdown.
Should it fail to find a partner to rescue some of its stores, Forever 21 would rely on shipping goods directly from overseas factories to consumers and to other retail outlets, according to a person familiar with the company’s plans. Authentic Brands Group LLC, the apparel and lifestyle label empire which owns the Forever 21 name and other intellectual property, has successfully tested the factory-to-retailer model outside the US, the person said.
Last year just 11% of Forever 21’s sales were online, according to court papers. The company also plans to sell Forever 21 apparel in partner stores, including in JCPenney where such an arrangement is already underway.
Currently, Forever 21 uses a traditional structure in which designers and other vendors in the US acquire merchandise from overseas factories, mainly in China, Korea and Hong Kong, according to court records. That material is then sent to Forever 21 stores and warehouses, which requires the company to pay duties and tariffs, the records show.
Authentic Brands will continue to own the IP and may license the brand to other operators, according to a statement Sunday. Forever 21’s locations outside of the US are operated by other licensees and aren’t included in the bankruptcy.
The company plans to finish shutting its stores by the end of April, Magaziner said in court on Tuesday. If a buyer appears for some of the stores, the company would adjust its strategy, he told Walrath.
A joint venture of Hilco, Gordon Brothers Retail Partners LLC, and SB360 Capital Partners is working on the liquidation.
The court also approved a request to use secured lenders’ cash to fund the bankruptcy cases and payrolls. The company entered the Chapter 11 with about $47.2 million bank cash, according to a budget disclosed in the court papers.
It’s the clothing brand’s second stint with bankruptcy. Its first in 2019 was rife with fighting, left creditors little recovery and resulted in the closing of hundreds of locations it had during its heyday.
A group of buyers — including Simon Property Group Inc., Brookfield Corp. and Authentic Brands — teamed up to buy Forever 21 out of bankruptcy through a venture called Sparc Group. That group partnered with Shein in 2023 as Forever 21 attempted to solve some of its operational issues.
A few months ago, US retail group JCPenney acquired Sparc, forming Catalyst Brands. The deal saw its previous shareholders maintain minority stakes in the company. At the time of the merger, Catalyst said it was exploring strategic options for the operations of Forever 21.
Russian diamond producer Alrosa announced on Tuesday that it had decided to temporarily suspend operations at its less profitable deposits.
Reuters
The suspension will affect deposits with an annual production of less than 1 million carats, it said. The company said it still planned to produce 29 million carats of diamonds in 2025.
In November 2024, Alrosa said that it might suspend some production in 2025 and reduce staff.
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