Sustainable brand Reformation sell majority share. Sustainable brand Reformation has sold a majority share stake to London-based private equity firm Permira.
The sustainable fashion brand designs limited edition collections using eco-friendly materials and methods and was founded by Yael Aflalo.
In a statement, Aflalo said that the Permira investment will allow the brand to embark on its next chapter of growth, allowing the company to expand its ecommerce and retail footprint in the US and internationally.
Reformation was set up in 2009 by Aflalo, who set up a vintage clothing resale business she ran part time at the back of a Los Angeles retail store, selling secondhand garments made from repurposed material.
In 2013, the brand expanded into an ecommerce site with a downtown factory and three boutiques.
Alflalo, who is a model turned fashion entrepreneur, wrote in a journal entry about her dreams for her brand: ““I want to build a ‘conscious’ mega brand that proves fast fashion and sustainability can coexist. I want to work with smart talented people, grow a sustainable manufacturing facility and revolutionize the fashion industry.”
Several years later, Reformation has expanded to meet those demands, with the brand being a top choice for young female shoppers who like its humorous Instagram marketing and celebrity following.
Ms. Aflalo will remain CEO of the company and a significant owner of the company.
The Reformation deal is the latest in a string of acquisitions that highlight a growing private equity interest in a new generation of contemporary fashion businesses.
Permira declined to disclose a valuation for Reformation or what it had paid.
We feel that the business has reached a stage where we need a significant partner in order to really grow and meet our ambitions, be it entering into new international markets or opening new stores or developing new product lines,” Aflalo said this week.
“Permira was very convincing in proving to us that they respected our values and that they had a great deal of past experience in helping brands achieve what we want to achieve” she explained.
“We are excited for all that comes next.”
Sustainable brand Reformation sell majority share