ALC is said to be making the rounds with fashion retailers.
The buzzy brand designed by Andrea Lieberman is being acquired by investment bank Rothschild & Co., multiple sources told WWD.
Lieberman sold a majority stake in the company to Lee Equity Partners-backed InterLuxe in 2015. Since then the business has grown and its profile has grown.
Last month, during a preview of her resort 2023 collection, Lieberman said: “The business, touch of wood, is fantastic. We’re in the process of opening a store in Miami in October, launched swimwear, found our sweet spot.”
What is sold is “dresses, dresses, dresses,” said the designer. “People are coming out with a vengeance.”
The brand’s sales are said to weigh in at around $60 million with earnings before interest, taxes, depreciation and amortization of $15 million.
But it seems it’s time for the companies’ backers to move on. Seven years is a relatively long investment in the private equity world. InterLuxe is no longer making new investments, but it also has a stake in Mackage and earlier exited its investment in Jason Wu.
Gary Wassner, who is a board member at InterLuxe and ALC, declined to comment Wednesday, as did a representative for the brand. Rothschild did not return a WWD query.
The process is playing out in a very different world this time around.
The economy is shaky, inflation is high, the war in Ukraine rages and COVID-19 continues to erode supply chains.
But so far, higher-end consumers like those who gravitate toward ALC have held up pretty well all things considered.
However, the clothing market complicates matters. Private equity firms have somewhat chafed at fashion as there are fewer natural buyers for mid-market brands – even those that are doing well. And large strategic buyers are looking for big deals to build their capabilities.
