1. Partnerships & Alt Profit

Hilco, TPG Form Joint Venture to Acquire Struggling Brands, Beginning with Bebe and Brookstone

Hilco Global has launched a new joint venture with TPG in partnership with Bluestar Alliance.

Financial services company Hilco Global and asset management firm TPG Angelo Gordon have formed a new joint venture (JV), with the goal of acquiring and financing consumer brands and IP in partnership with brand management firm Bluestar Alliance.

Just last month, Bluestar acquired luxury streetwear brand Off-White from LVMH, and one of the JV’s first moves will be to co-invest an undisclosed amount in the Off-White brand. The JV also has made a $190 million investment in some of the other brands managed or co-owned by Bluestar, including Hurley, Justice and Scotch & Soda, and announced plans to acquire the assets and IP of the Bebe and Brookstone brands. Both brands have been owned by Bebe Stores, Inc. and managed by Bluestar since 2018. Financial details of the Bebe Stores deal were not disclosed.

Going forward, the JV will continue to look for additional consumer brands and IP to acquire or finance alongside Bluestar. Both Hilco and TPG specialize in managing and repositioning failing brands. In July 2024, Hilco’s Consumer-Retail group acquired the operations of Hanes Outlet and Maidenform stores from the struggling HanesBrands, and earlier this year Hilco Global handled the liquidation sales for 99 Cents Only following that company’s bankruptcy.

“We’re thrilled that Hilco Global and TPG Angelo Gordon will be new partners in many of our brands,” said Ralph Gindi, Co-founder and COO, and Joseph Gabbay, Co-founder and CEO of Bluestar in a statement. “TPG Angelo Gordon brings significant resources and expertise investing within the consumer sector, and Hilco has an impressive track record of successfully operating and investing in brands and other consumer assets globally. We are excited to partner with these blue-chip firms and leverage our combined expertise to identify and invest in future brand deal opportunities all over the world.”

“This partnership is an exciting opportunity for Hilco, allowing us to further build on our successful legacy in the consumer brand and licensing sectors,” said Jeffrey Hecktman, Founder and CEO of Hilco Global in a statement.

“We believe combining Bluestar’s licensing and operating expertise, Hilco’s unique sourcing and asset capabilities, and TPG Angelo Gordon’s structuring and financial expertise creates a differentiated competitor, and we are eager to grow this platform,” added Ryan Mollett, Global Head of Credit Solutions at TPG Angelo Gordon, and Jake Gladstone, Co-Head of Research within TPG Angelo Gordon’s Credit Solutions business in the statement.

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