Second Avenue Capital Partners (SACP), the lending arm of SB360 Capital Partners, closed 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,” Jessica Simpson, CEO of the Jessica Simpson Collection, said.
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.
“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,” Simpson said. “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 Simpson, Tina Simpson 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 five new license categories and an additional five 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.
“When we were first introduced to Jessica, Tina and the team we knew right away it was a perfect fit,” Aaron Miller, president of SB360, said. “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.”
“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,” Tina Simpson, president of The Jessica Simpson Collection, said. “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.”
“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%,” Jeffrey Howald, CFO of the Jessica Simpson Collection, said. “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.”
“This is the type of transaction we are built for,” Mike Sullivan, managing director of SACP, said. “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 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 served as legal counsel to Second Avenue Capital Partners in the negotiation of the new credit facility.
