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December 18, 2024
Vera Wang Says ‘I Do’ to Private-Equity-Backed Firm
Vera Wang, the iconic wedding dress brand self-financed since its founding in 1990, reached an agreement to be sold to WHP Global, a brand-management firm backed by private equity.
As part of the transaction, the brand’s eponymous owner Vera Wang will continue as chief creative officer and join WHP as a shareholder. Similar to its other deals, WHP acquired Vera Wang’s intellectual property.
Wang, who is 75, launched her brand at a single bridal salon in Manhattan’s The Carlyle Hotel. Her gowns continue to be regularly worn by celebrities, including Ariana Grande, Beyoncé, Hailey Bieber, Kim Kardashian, and Zendaya.
Supported by numerous licensing deals, Vera Wang has blossomed into a full-fledged lifestyle brand, also offering ready-to-wear, men’s tuxedos and suiting, fine jewelry, fragrance, home, and shoes. The luxury house does more than $700 million in annual retail sales.
The designer had explored a sale to Liz Claiborne and St. John Knits in 2006 before landing a lucrative licensing deal with Kohl’s for Simply Vera Vera Wang in 2007.
In an interview with Vogue Business, Wang said the WHP sale will help accelerate expansion globally, particularly in China, the Middle East, and Latin America. She also cited potential opportunities with hotels, condos, and other “experience businesses” that could capitalize on the brand’s bridal or style roots.
“As a privately owned company, that limited how much growth I could fund,” said Wang. “Now, I have the right partner at the right stage.”
For WHP, Vera Wang will anchor a new premium fashion vertical together with existing brands like Rag & Bone, Joe’s Jeans, and G-Star.
Founded in 2019, WHP is better known for acquiring brands facing challenges, including recently acquiring Express, including Bonobos, out of bankruptcy proceedings. The portfolio, also including Anne Klein, Joseph Abboud, Isaac Mizrahi, Lotto, Warners, Toys“R”Us, and Babies“R”Us, generates over $7 billion in global retail sales annually.
WHP was co-founded by Yehuda Shmidman, with the help of funds managed by Oaktree Capital Management. Other backers include Ares Management and BlackRock. The business was valued at $1.6 billion in March 2023.
Beyond funding, Vera Wang is expected to benefit from WHP’s brand-building expertise, including its internal turnkey e-commerce platform and Asia-based sourcing agency.
“What’s unique about Vera’s business is that she’s always been very focused on being a lifestyle brand and a brand that has the potential for licensing,” Robert Burke, chairman and CEO of Robert Burke Associates, told WWD. “She was very early on with the mattress deal and the Lenox tabletop. She tapped into that bridal market and realized it was multifaceted. If she couldn’t make it, she partnered with someone who could.”
He added, “She’s still the most internationally recognized label in bridal, hands-down. I think there’s still a great deal of room for her brand to grow.
Discussion Questions
Do you see more benefits than risks in Vera Wang moving from private ownership to being under the control of private-equity-backed WHP Global?
What advice would you have for Vera Wang and her team?
Poll
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Mohamed Amer, PhD
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We need to be candid here and admit VW Inc was long past the “seamstress in the backroom” cliche: so it’s not so much a loss of individualism as something big getting bigger; many will make a lot of money off it. Still, I’m underwhelmed: however glorious these things sound at the start, they seem to end up “less and less offered to more and more.”
Vera Wang has long focused on expanding the brand and pushing the boundary of luxury positioning. However, I think this move has less to do with expanding reach than with Kohl’s troubles. It would not surprise me if WHP seeks to reposition or rehome the brand or diffusion line SVVW.
This deal gives WHP another fashion asset that it can integrate into its extensive portfolio. The firm has been growing its premium offering of late, and Vera Wang helps with that effort. I don’t think there will be many aesthetic changes at Vera Wang, at least initially. Vera Wang herself will remain with the brand and will help guide its direction. However, with the backing of WHP, Vera Wang could undertake more expansion both in the US and internationally. I suspect WHP and Vera Wang have a vision to drive the brand into more of a lifestyle offering. In terms of stores, there is scope to add more Vera Wang physical shops, but I suspect expansion here will be gentle.
This financial wedding is a pure growth opportunity and geographic expansion for Vera Wang, which leverages WHP’s operational and digital commerce strengths. While Vera Wang’s design genius continues to shine, the PE deal with WHP allows her to focus on the most fulfilling aspects of the business: creating elegant and sophisticated designs around the wedding experience- from bridal gowns to the exclusive LOVE ring collection at Zales.
Bravo, Vera! You deserve it.
It’s heartening to see someone who started as an independent retailer with single store reach such a high level of success. You know there are plenty of others out there waiting to be found!
Do people even get married any more? Sounds like a good deal for Vera Wang-sell while you can.