Palace Seeks Investor, Wants To Expand Retail
LONDON, ENGLAND — Streetwear purveyor Palace is seeking a new investor.
The UK – based streetwear brand is in talks, with the process “being aided by investment bank Rothschild.” The talks are currently speculated to revolve around retail expansion, with founder Levent Tanju and co-owner Gareth Skewis seeking a partner to help in funding the brand’s flagship growth. Just over the past year alone, the brand has opened two of its four stores in Los Angeles and Tokyo. The move could mark an interesting development within the streetwear sphere, especially at a time when many luxury fashion houses are struggling to attract millennial consumers.
In October 2017, DM Fashion Book reported that Supreme sold 50 % of its stocks to The Carlyle Group for $500 million USD, which put the brand’s value at $1 billion USD (see it here) and just in August 2019, we announced that Farfetch made a new acquisition, picking up brand platform New Guards, which is the licensee of Virgil Abloh‘s Off-White, for $675 million (see it here).
Palace’s astronomical growth over the past several years has in a sense, reinvented the street aspect of streetwear—lavish marketing campaigns from using a severed Jonah Hill-head to announce its Tokyo flagship, to supporting various skaters and more have helped the brand embrace the community that consumes its products. The brand has catapulted into a significant cultural marker for many partaking in youth culture, from well-placed and highly-anticipated collaborations alongside Polo Ralph Lauren, Umbro, and adidas, the brand has been able to market its lifestyle to a wide range of customers through well-crafted ’90s nostalgia, massive celebrity endorsements, and more.
All of this had led to a 79.3% increase in turnover from 2017’s £14.4 million GBP to £25.9 million GBP in the beginning of 2018, with the brand’s profit margins steadily growing. Much of this relies on Palace’s authenticity within the lifestyle market, whereby the brand has effectively capitalized on its immense street cred through embracing its community, making it a unique opportunity for many investors looking to help the brand expand.
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