The stake was acquired from affiliates of Sun Capital Partners, marking P180’s third strategic acquisition since its establishment last year. P180’s recent investments include the fashion brand Altuzarra and a digital collaboration with the premium multi-brand retailer elysewalker.
P180 was co-founded by Christine Hunsicker, who also founded CaaStle, and Hoffman. It focuses on enhancing the financial outcomes for brands and retailers.
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Established in 2002, Vince has a network of 47 full-price retail stores, 14 outlet stores, and its e-commerce site. The fashion brand offers its subscription service, Vince Unfold, which is operated by CaaStle.
The retailer reported a 4.7% decline in net sales to $80.12m in the third quarter of fiscal 2024, primarily due to decreased direct-to-consumer and wholesale sales within the brand.
The transaction has positioned P180 as the beneficial owner of approximately 65% of Vince’s outstanding common stock, while Sun Capital’s affiliates retain around 2%.
Vince chairman Michael Mardy said: “P180’s acquisition represents a transformative opportunity for VNCE. With this transaction, we will gain the operational expertise and cutting-edge digital capabilities needed to drive the brand’s future success.”
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By GlobalDataHoffman is expected to take on the CEO role around 3 February 2025, pending finalisation of his employment agreement.
Previously, he held the CEO position at Vince for five years.
Concurrent with this change in leadership, David Stefko will resign from his interim CEO role but continue his service on the Board.
Additionally, Matthew Garff has tendered his resignation from the Board in relation to the acquisition.
Hoffman said: “VNCE is the perfect partner for P180; the brand’s dominance in the luxury contemporary market aligns seamlessly with our acquisition strategy.
“Personally, I have a strong connection to the Vince brand, having served as VNCE CEO for five years. I am excited to lead the team again as we continue to unlock new growth opportunities, drive innovation, enhance the brand’s market position, and focus on monetizing the Company’s inventory to ensure continued long-term success.”
In tandem with these developments, Vince has taken measures to significantly reduce its debt burden. An indirect subsidiary of Vince, V Opco, amended its ABL Credit Facility with Bank of America.
This amendment accommodated a change in control due to the P180 Acquisition and allowed for a partial paydown of subordinated debt through increased borrowings under the ABL facility.
Consequently, V Opco paid $15m towards its obligations to SK Financial Services—an affiliate of Sun Capital—using proceeds from this credit facility, reducing its subordinated loans by approximately $27.
This strategic financial manoeuvring not only alleviates Vince’s debt profile but also positions it for enhanced financial flexibility and operational efficiency going forward.
