New York City-based Galaxy Brand Holdings, which is backed by The Carlyle Group, has acquired Linens ‘N Things from Gordon Brothers Group, Hilco Global and Infinity Lifestyle Brands. No financial terms were disclosed. Prior to filing for bankruptcy in 2008, Linens ‘N Things was a leading home goods retailer with 571 stores. The company was later bought by a consortium of investors who relaunched Linens ‘N Things as an online retailer of home goods.
BOSTON and NEW YORK, Dec. 9, 2013 /PRNewswire via COMTEX/ — In a joint announcement today, Gordon Brothers Group, Hilco Global and Infinity Lifestyle Brands reported the sale of the Linens ‘N Things intellectual property assets to Galaxy Brand Holdings for an undisclosed amount.
Galaxy Brand Holdings is a brand development company with a diversified portfolio of consumer brands generating over $700 million in annual retail sales across every segment of distribution. In addition to Linens ‘N Things, its current portfolio includes AND1, Avia and Nevados. In May 2013, The Carlyle Group acquired a majority interest in Galaxy Brand Holdings.
Linens ‘N Things was a major retailer of home goods with 571 stores and $2.7 billion of annual sales before filing for bankruptcy in 2008. In February 2009, Hilco Global, Gordon Brothers Group and other partners disposed of the company’s assets, including store and e-commerce inventory and real estate. The intellectual property was subsequently acquired by a joint venture including Hilco Global, Gordon Brothers Group and Infinity Lifestyle Brands. The Linens ‘N Things brand was re-launched as an online retailer of home goods, providing a wide array of home merchandise at value-oriented prices directly to consumers.
“Linens ‘N Things enjoys a rich history of providing consumers with a broad assortment of high-quality, value-priced home products. We plan to leverage this heritage to connect with consumers by offering Linens ‘N Things branded products, and by re-establishing the brand as a premier home destination both in-store and online,” said Abe M. Hidary, Vice President of Corporate Development at Galaxy Brand Holdings.
“This transaction marks another successful turnaround of a valued brand. We are excited for Galaxy to continue the growth the brand has experienced over the past few years and build upon the brand’s strong history and resonance with consumers,” stated Jeffery Hecktman, Chairman and CEO of Hilco Global.
Kenneth S. Frieze, President of Gordon Brothers Group, added, “We’ve been proud stewards of the Linens ‘N Things brand for the past four years and believe that this sale takes place at an exciting time for Galaxy, who will undoubtedly have enormous success taking it to the next level.”
“The brand equity inherent in Linens and Things is testimony to the power of our unique licensing platform,” stated Ike S. Franco, Chairman of Infinity Group LLC.
The transaction follows on the heels of other successful brand turnarounds such as The Bombay Company, Polaroid and The Sharper Image by Hilco Brands, a division of Hilco Global and Gordon Brothers Group’s Brand Division.
About Galaxy Brand Holdings
Galaxy Brand Holdings ( www.galaxybrands.com ) owns a diversified portfolio of consumer brands generating over $700 million in annual retail sales. The Company’s branding expertise, retail relationships and strategic partnerships create significant value for its best-in-class licensees who design, source and distribute products to retailers around the globe. With innovative and creative advertising and promotions, Galaxy Brand Holdings is an industry leader in promoting and elevating brands in the marketplace through traditional and digital platforms. Galaxy Brand Holdings was founded in 2011 and is based in New York City.
About Hilco Global
Located in metropolitan Chicago, Hilco Global ( www.hilcoglobal.com ) is the world’s preeminent authority on helping businesses to maximize the value of their assets. Hilco Global has built a comprehensive business practice that delivers a full complement of asset valuation, asset monetization, and advisory solutions. Through 20+ expert business units around the world Hilco Global provides an extensive range of services including asset appraisals; acquisition and disposition services in retail inventory, consumer products, industrial equipment, intellectual property and real estate; private equity investments; and, advisory-consultative solutions.
Hilco Brands LLC, a unit of Hilco Global, identifies the intrinsic and potential value in an underperforming brand or portfolio of brands. Then, acting as an agent or as an investor-partner, devises and implements restructuring and revitalization programs designed to operate the business more effectively and derive new revenue streams through initiatives such as brand licensing, product development and cutting-edge marketing campaigns.
About Infinity Lifestyle Brands
Infinity Lifestyle Brands, LLC (“ILB”) ( www.infinity-group.com ) is the New York based Infinity Group’s consumer products and brand management platform. It leverages the Group’s licensing, merchandising, marketing and manufacturing credentials. Infinity Lifestyle Brands specializes in acquisition and repositioning via a licensing platform of underleveraged or dormant brands with high consumer awareness. The company owns and operates consumer electronics, home, beauty, apparel and food & beverage brands whose products span multiple distribution channels. Current portfolio investments include Polaroid, Miss America, Altec Lansing, XOXO and Yankees Global Enterprises. ILB past holdings include Starter, Bugle Boy, Sharper Image, Cannon, Royal Velvet, Charisma, and Fieldcrest. ILB’s parent, Infinity Group, is a private equity firm with a portfolio of investments in commercial real estate, hospitality, entertainment, and consumer products.
About Gordon Brothers Group
Founded in 1903, Gordon Brothers Group ( www.gordonbrothers.com ) is a global advisory, restructuring and investment firm specializing in the retail, consumer products, industrial, intellectual property and real estate sectors. Gordon Brothers Group maximizes value for both healthy and distressed companies by purchasing or selling all categories of assets, appraising assets, providing debt financing, and operating businesses for extended periods. Gordon Brothers Group conducts over $50 billion worth of transactions and appraisals annually.
The Brand Division of Gordon Brothers Group acquires, develops, and licenses brands and other intellectual property. Previous brand investments include Polaroid®, The Sharper Image® and Bombay® Mark Fore & Strike® and Casual Corner®, among others.