Major Fashion News: New York & Company Acquires Fashion to Figure
Fashion to Figure is getting a second chance.
The plus size fashion retailer announced some time ago that it was filing for bankruptcy and starting liquidation sales in all their brick and mortar stores and online. Their future appeared uncertain until this morning, when news broke that specialty women’s apparel chain New York & Company has acquired the brand.
According to Business Wire, the acquisition will take place during the fourth quarter of fiscal 2017 and covers all intellectual property, including trademarks, trade names, an extensive customer database, and all in-store assets, with the exception of inventory.
It appears that New York & Company will retain the brick and mortar stores. They also will be hiring certain former FTF employees, including members of the design, merchandising and eCommerce teams, who are expected to join the Company during the fourth quarter of fiscal year 2017.
New York & Company will also be negotiating with certain market vendors to secure inventory for the anticipated relaunch in early 2018.
We don’t know what this means and how much FTF will change so this is basically a waiting game.
According to an official statement, the agreement closing positions New York & Company “to re-introduce a revitalized Fashion to Figure brand to the marketplace in early February 2018 through an online site and select Fashion to Figure stores, thereby providing the Company an opportunity to capture a significant portion of the former Fashion to Figure’s existing profitable sales.”
Gregory Scott, New York & Company’s CEO stated:
“We are excited to expand into the Plus Business with the acquisition of Fashion to Figure’s intellectual property, as we believe that the business the Kaplans built has true brand potential and has a brand platform that is compatible with New York & Company. We believe Fashion to Figure has strong name recognition with the Plus-size consumer and a very loyal consumer base, with a database of approximately 500,000 customers, that we believe we can effectively leverage to grow the brand, particularly online, to drive profitable future growth. We see an opportunity to enter into an underserved and growing segment of the women’s apparel market. In fact, NPD estimated the size of the women’s plus-size apparel market was approximately $21 billion in 2016, and has grown at more than twice the rate of the overall U.S. women’s apparel market and this outsized growth is expected to continue. We believe the combination of Fashion to Figure’s outstanding brand equity and expertise in the Plus-size space coupled with New York & Company’s operational expertise, omni-channel capabilities, strong digital business, and celebrity platform will enable us to generate significant top line growth and sustained profits with the Fashion to Figure business while ensuring to preserve its existing brand DNA. We look forward to working with the Kaplans to reintroduce the brand to the marketplace and to Fashion to Figure’s loyal customers at the start of our new fiscal year.”