US’ Jessica Simpson Collection secures $67.5 mn term loan

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, the two entities said in a joint media release.

Second Avenue Capital Partners (SACP), the lending arm of SB360 Capital Partners (SB360), has 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. It will be used to retire an existing credit facility.

“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 organisation. 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.

In November of 2021, Jessica Simpson and her business partner and mother Tina Simpson acquired 100 per cent of the brand. Having retained 37.5 per cent 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 currently features 37 product categories including footwear, apparel, fragrance, luggage, fashion accessories, handbags, jewellery, maternity apparel, girls’ clothing, and home. New endeavours will include skincare, health and wellness, demi-fine jewellery and furniture.

Aaron Miller, president of SB360, said, “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.”

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 per cent.  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 organisation. This is another proof point of the impact of the work we do at Second Avenue Capital Partners.”

Fibre2Fashion News Desk (KD)