Second Avenue Capital Partners (SACP), the lending arm of SB360 Capital Partners (SB360), announced the closing of a $67.5 million term loan for The Jessica Simpson Collection, the $1 billion fashion empire and signature lifestyle brand inspired by and designed in collaboration with Jessica Simpson. The new financing will be used to retire an existing credit facility and provide additional liquidity to fund new growth and a rapidly expanding portfolio.
“While this facet of our relationship may be new, our experience with Schottenstein goes back to our roots,” said Jessica Simpson, CEO of the Jessica Simpson Collection reflecting on the long history with the Schottenstein organization. Jessica Simpson launched her label in 2005 under the guidance of Vince Camuto and the Camuto Group. In 2018 Schottenstein led Designer Brands Group partnered with Authentic Brands Group to acquire Camuto Group.
Jessica continued, “Vince used to say, ‘without the right people, you’re nowhere’. We have that in our management team, we count on it from our licensing partners, and now we can rely on it from our financing partner. It feels amazing to have full control of our company and with the right support in place, the sky’s the limit.”
In November of 2021, Jessica Simpson and her business partner and mother Tina Simpson acquired 100% of the brand. Having retained 37.5% of the brand when a majority stake was acquired by Sequential Brands in 2015, Jessica, Tina, and their team were determined to reclaim full control of the lifestyle brand they had spent 16 years developing and building.
After taking full ownership and control, the team immediately embarked on plans to further develop the existing business and expand the brand into new categories with immediate signings in 5 new license categories and an additional 5 more in negotiations. The Jessica Simpson Collection, on target for a record-breaking 2022, currently features 37 product categories including footwear, apparel, fragrance, luggage, fashion accessories, handbags, jewelry, maternity apparel, girls’ clothing, and home. New endeavors will include skincare, health and wellness, demi-fine jewelry, and furniture.
Aaron Miller, President of SB360, expressed great admiration for the brand as well as Jessica and Tina’s leadership. “When we were first introduced to Jessica, Tina and the team we knew right away it was a perfect fit. It’s impressive to see what the team has accomplished since their recent re-acquisition and we are excited to provide this financing to further fuel growth. Jessica and Tina have spent years building a tremendously successful lifestyle brand by offering customers a quality product at an affordable price point, product that’s relatable to all kinds of women. This creative financing solution is exactly what we set out to do when Second Avenue Capital Partners was founded; use our merchant perspective to satisfy the unique capital needs of retail and consumer companies.”
Tina Simpson, President of The Jessica Simpson Collection, discussed the next chapter of the business. “We have amazing talented licensing partners, and to have Jessica at the helm gives them renewed energy and belief in the future of the brand. By regaining control of her namesake brand, Jessica and I, along with our hard-working and dedicated team can build a legacy brand that will transcend generations. We are excited to have SACP and our licensing partners in our corner, supporting our objectives, as we embrace the future and continue to build the brand.”
Jeffrey Howald, CFO of the Jessica Simpson Collection shared, “We’re thrilled with the success of the brand since the acquisition in November 2021, as evidenced by a very strong 1st quarter of 2022 where we exceeded year over year 1st quarter revenues by 15%. We’ve also undergone an aggressive expansion into international sales, and we’re extremely pleased by the reception from our new and potential partners in such a short time since closing the brand acquisition.”
Mike Sullivan, Managing Director of SACP added “This is the type of transaction we are built for. With the Jessica Simpson Collection you have an incredibly successful brand that transcends celebrity. It’s a dynamic founder-driven company that can use our capital to fuel the next chapter of their success story. For us, this term loan is one part of a much larger relationship, one that reaches across the broader Schottenstein organization. This is another proof point of the impact of the work we do at Second Avenue Capital Partners.”
Michael Howald of Katten Muchin Rosenman LLP served as legal counsel to The Jessica Simpson Collection in the negotiation of the new credit facility. Steven Fox and Lyle Stein of Riemer & Braunstein LLP served as legal counsel to Second Avenue Capital Partners in the negotiation of the new credit facility.
Second Avenue Capital Partners, LLC (“SACP”), a Schottenstein Affiliate, specializes in asset-based loans for the broader retail and consumer products industry. Serving middle-market companies, SACP leverages the experience of retail operators, product merchants, and lenders to deliver an array of customized, capital solutions. A unique merchant perspective gives SACP the ability to recognize and unlock value in assets other capital providers often overlook or do not understand. The firm’s tailored financial solutions are a vital resource for clients seeking capital to effectuate strategy and achieve financial objectives. SACP is headquartered in Boston with additional offices in New York, Columbus, and Los Angeles.
SB360 Capital Partners, a Schottenstein Affiliate, helps businesses manage change, restructure assets, and turn around dwindling profitability. SB360 makes equity investments to infuse capital for growth opportunities, fund turnarounds, and provide liquidity to businesses experiencing change. SB360 acquires assets of all types including inventory, fixed assets, intellectual property, real estate, and complete business units. The firm’s asset disposition services range from providing guaranteed asset value recovery to acting as a liquidation consultant. Additionally, SB360 has entities engaged in real estate advisory and commercial real estate investment. A lending affiliate, Second Avenue Capital Partners, provides asset-based loans for middle-market companies. The principals of SB360 hold extensive commercial interests in national retail and wholesale operations; internationally recognized consumer brands; commercial, residential, and industrial real estate properties; and financial service operations.
The Jessica Simpson® Collection is inspired by and designed in collaboration with Jessica Simpson, the entertainment, music and style icon. This lifestyle collection reflects all that is modern Americana: it is iconic, fashion-forward, accessible, free-spirited, timeless and affordable. Available globally, the collection spans 37 classifications – including footwear, apparel, outerwear, activewear and fitness accessories, sunglasses, optical frames, handbags and small leather goods, luggage, swimwear, perfume, legwear, beauty tools and face wipes, scarves/hats/wraps, jewelry, watches, intimates, slippers, cold weather accessories, luggage, dresses, jeanswear, sportswear, athleisure, coats, swimwear, maternity apparel, baby, toddler and girls’ apparel and pet. The growing home product offering includes bedding, towels and home accessories. The collection, like Jessica herself, is classically familiar, approachable yet inspirational, sexy yet sweet, flirtatious and whimsical, vintage at times, but always of-the-moment. The Jessica Simpson® Collection is currently available in over 3,000 points of distribution worldwide and direct to consumers at www.jessicasimpson.com.