Fusion sells JAG in bid to look good
JAG will be sold to the Apparel Group, which also owns well-known fashion labels Sportscraft, Saba and Willow. The deal is subject to completion of due diligence.
Colorado Group went into administration in 2011 and was later rescued and restructured by private equity duo Ice Canyon and Anchorage Capital.
Fusion Retail Brands still owns Diana Ferrari, Williams, Mathers and Colorado, and its private equity owners are taking bids for buyers of the retail business.
Fusion Retail Brands chief executive Don Grover told BusinessDay the JAG brand did not fit in the company's fashion portfolio and it made sense to divest it as the group was also looking for a buyer for the whole business.
"I think the main reason is we are trying to find the right partners for our brands and the balance of our brands are all very footwear centric, whereas the JAG brand has less synergies," he said.
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Fusion Retail Brands sold the JAG clothing brand to the Apparel Group for an undisclosed sum. The deal is subject to completion of due diligence.
Apparel Group is the buyer of JAG. The Apparel Group also owns well-known fashion labels Sportscraft, Saba and Willow, according to the article.
Fusion CEO Don Grover said JAG did not fit the company’s fashion portfolio and had fewer synergies with the rest of the group, which is increasingly footwear-centric. Selling JAG was part of finding the right partners for their brands.
After the JAG sale, Fusion Retail Brands still owns Diana Ferrari, Williams, Mathers and Colorado.
Private equity owners are polishing Fusion up for sale as a pure-play footwear retailer. They have divested JAG and are taking bids from potential buyers for the retail business as part of that process.
Colorado Group went into administration in 2011 and was later rescued and restructured by private equity firms Ice Canyon and Anchorage Capital. The business now trades as Fusion Retail Brands under private equity ownership.
The article notes the JAG sale is subject to completion of due diligence, so the transaction had not been fully finalized at the time of reporting.
The sale signals a strategic shift toward a footwear-focused business and a potential change of ownership as private equity owners seek buyers. Investors should view it as part of a restructuring and sales process rather than an isolated transaction.
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