P180 Acquires Majority Stake in Vince Holding Corp. to Drive Growth in Luxury Apparel
Vince Holding Corp. (NYSE: VNCE), a global contemporary retailer, has announced a pivotal transaction: P180, a new venture focused on enhancing growth and profitability in the luxury apparel sector, has acquired a majority stake in Vince Holding Corp. This transaction, referred to as the “P180 Acquisition,” marks a transformative moment for VNCE, as it transitions from its previous majority ownership under affiliates of Sun Capital Partners, Inc.
This acquisition aims to bolster VNCE’s operational efficiency and elevate its position in the competitive luxury fashion market.
Leadership Transition to Steer VNCE Forward
Coinciding with the P180 Acquisition, Brendan Hoffman is set to assume the role of Chief Executive Officer of Vince Holding Corp., effective around February 3, 2025, subject to finalization of his employment terms. Hoffman, who previously served as CEO of VNCE for five years, expressed enthusiasm about rejoining the brand.
“VNCE is the perfect partner for P180. The brand’s dominance in the luxury contemporary market aligns seamlessly with our acquisition strategy. Leveraging the cutting-edge technology and team of CaaStle, co-founded by Christine Hunsicker, my partner at P180, we aim to enhance VNCE’s omni-channel experience and profitability. I am eager to lead this incredible team as we unlock new growth opportunities and strengthen the brand’s market position,” said Hoffman.
David Stefko, who has been serving as interim CEO, will step down from his role upon Hoffman’s transition but will continue contributing to the organization as a member of the VNCE Board of Directors. Additionally, in connection with the acquisition, Matthew Garff resigned from the VNCE Board of Directors.
Michael Mardy, Chairman of VNCE, commended the leadership transition, stating, “P180’s acquisition represents a transformative opportunity for VNCE. With this transaction, we gain access to operational expertise and digital capabilities that will drive the brand’s future success. On behalf of the Board, I extend my gratitude to Dave Stefko for his steadfast leadership as interim CEO. We look forward to Brendan Hoffman guiding VNCE into its next chapter.”
Strategic Moves by P180
P180’s acquisition of Vince Holding Corp. follows its recent investments in Altuzarra, a prestigious fashion label, and a digital partnership with multi-brand premium retailer elysewalker. These deals highlight P180’s commitment to building a robust portfolio of brands and retailers that benefit from its digital expertise and inventory monetization capabilities.
P180, co-founded by Christine Hunsicker, founder and CEO of CaaStle, aims to invest in and acquire brands poised for digital transformation and operational excellence. With its innovative monetization platform, P180 seeks to empower brands like VNCE to thrive in an increasingly competitive market.
Strengthening VNCE’s Financial Position
The P180 Acquisition also involved critical financial restructuring to support VNCE’s long-term growth. V Opco, LLC, a wholly-owned subsidiary of VNCE, amended its existing credit agreement with Bank of America, N.A. (BofA). This amendment allowed for changes in control associated with the P180 Acquisition and facilitated the partial paydown of subordinated debt held by affiliates of Sun Capital.
As part of this restructuring:
- VNCE used proceeds from the amended ABL Credit Facility to pay $15 million to SK Financial Services, LLC, reducing the subordinated debt by $20 million.
- P180 acquired $7 million of the subordinated loans, which it immediately canceled, further reducing VNCE’s debt burden by $27 million.
- Following these transactions, approximately $7.5 million remains outstanding under the Sun Debt Facility, which will continue to accrue payment-in-kind interest.
In total, these financial maneuvers significantly reduce VNCE’s debt, positioning the company for sustainable growth under P180’s leadership.
P180 Takes Control
Following the acquisition, P180 now holds approximately 65% of VNCE’s outstanding shares, with affiliates of Sun Capital retaining roughly 2%. P180 also agreed to reimburse VNCE for certain transaction-related expenses, including legal fees and consent fees to BofA.
About Vince Holding Corp.
Founded in 2002, Vince Holding Corp. is a global leader in luxury apparel and accessories. Known for its timeless, elevated designs, VNCE caters to both women and men, offering ready-to-wear collections that emphasize effortless style. The company operates 47 full-price retail stores, 14 outlet stores, and an e-commerce platform. Vince also runs a subscription service, Vince Unfold, in collaboration with CaaStle.
VNCE’s brand ethos revolves around quality and elegance, making it a prominent name in the global luxury market. Its commitment to excellence extends through premium wholesale channels worldwide.
About P180
P180 is a venture co-founded by Brendan Hoffman and Christine Hunsicker to accelerate growth and profitability for brands and retailers. Combining operational expertise with cutting-edge digital tools, including CaaStle’s monetization platform, P180 focuses on creating value for luxury and contemporary brands.
Read more: Vince Transforms: P180 Takes Majority Stake from Sun Capital in Strategic Move
