J.Lindeberg Announces Joint Venture with People's Liberation Inc. for the U.S. Market
STOCKHOLM, August 28, 2008 /PRNewswire/ — J.Lindeberg, designer of high-end fashion, announced that it has formed a joint venture with People's Liberation™ under the brand names People's Liberation™ and William Rast™ to operate the J.Lindeberg brand in the United States.
A new company, J.Lindeberg USA, LLC, has been set up to market and sell the existing men's high-end fashion and golf apparel brand in the United States. Under terms of the agreement, the joint venture business will acquire certain assets from J.Lindeberg USA, including its accounts receivable, the New York retail store, inventory and human capital, among other assets. People's Liberation will manage the joint venture business and provide working capital. J.Lindeberg USA and People's Liberation will each own 50% of the joint venture.
J.Lindeberg CEO Stefan Engström commented, "We are pleased to announce this partnership with People's Liberation for the United States market. People's Liberation will bring both additional resources and complementary expertise to our existing U.S. operation and will allow for more focus and faster growth of the J.Lindeberg brand."
Johan Lindeberg, the brand's founder and creative director, added, "J.Lindeberg was always built with the US market in mind. I am really confident that this Joint Venture will enable us to capitalize of the brand awareness and position that we have built the last 12 years as well as create stronger synergies between the group of brands that are now managed under People's Liberation."
"We are excited about adding J.Lindeberg USA to our growing portfolio of brands," stated Colin Dyne, Chairman and Chief Executive Officer of People's Liberation. "This joint venture provides us with an opportunity to build and expand a complementary U.S. business around a super-premium European brand. It also gives us a valuable retail foothold in New York City."
"Revenue and expenses for the entire joint venture will be consolidated on the People's Liberation income statement," observed Mr. Dyne, "adding muscle to our financial condition and operating capabilities. We largely control the destiny of the new enterprise inasmuch as we will be managing it. Our single-minded purpose is to build and expand a profitable U.S. business for this marquee global brand."
J.Lindeberg AB is the privately-held, Sweden-based parent of J.Lindeberg USA, with approximately $55 million in global sales. Successfully combining fashion and sportswear innovations since its founding in 1996, J.Lindeberg AB distributes to more than 25 countries worldwide, including the United States, United Kingdom, Japan and Scandinavia, with a presence in upscale department stores and some of the world's most exclusive golf course pro shops. The more recently formed J.Lindeberg USA distributes its apparel lines through its flagship stores in New York City and Los Angeles, upscale department stores and online. J.Lindeberg USA apparel is also available at such preeminent golf courses as the Riviera Country Club and Pine Valley. It is worn by A-list celebrities including Brad Pitt, Justin Timberlake and Ewan McGregor, as well as by leading golf professionals including Jesper Parnevik, Camilo Villegas and Richard S. Johnson, winner of the recent PGA U.S. Bank Championship in Milwaukee.
ABOUT J.Lindeberg
Since its foundation in 1996 by creative director Johan Lindeberg, J.Lindeberg has successfully combined fashion and sportswear. The company's high-end men's fashion collection and premium golf apparel is sold worldwide in more than 25 countries including the US, UK, Scandinavia and Japan. Apart from J.Lindeberg flagship stores that can be found in e.g. New York, Stockholm, Copenhagen, Tokyo and Hong Kong, retailers carrying J.Lindeberg include leading independent boutiques, upscale department stores and some of the world's most exclusive golf course pro shops. Headquartered in Stockholm, the company's annual revenue is approx. USD 50million and since 2007 its principle owner is investment firm the Proventus together with CEO Stefan Engstrom.
ABOUT PEOPLE'S LIBERATION™ AND WILLIAM RAST™
Los Angeles-based People's Liberation designs, markets and sells premium contemporary apparel under the brand names People's Liberation™ and William Rast™ and also operates J.Lindeberg USA, LLC under a joint venture with global men's fashion and men's and women's golf apparel brand J.Lindeberg, based in Sweden. The clothing consists of premium denim, knits, wovens and outerwear for men and women. The William Rast™ brand is 50% jointly owned by the Company and superstar Justin Timberlake. The J.Lindeberg USA joint venture is operated by People's Liberation in partnership with the highly regarded design consultancy of Johan and Marcella Lindeberg, who also developed the William Rast™ Collection. The Company distributes its merchandise to better domestic department stores and boutiques, including Nordstrom, Saks Fifth Avenue, Neiman Marcus, Bloomingdales, and Fred Segal. Outside the U.S., its products are sold directly and through distributors to better department stores and boutiques in 16 nations. The Company also sells merchandise on its websites www.peoplesliberation.com and www.williamrast.com.
