that it is “evaluating investment options to fuel the next stage of growth.”
And that is generally the intent. Brands look for investment partners and sell them a stake — or control of the company — hoping to get the business to the next level so the whole enterprise grows in value and the brand expands. But things can get complicated at even the buzziest of brands as the fashion landscape changes and there are more voices in the boardroom.
This is familiar territory for McCollough and Hernandez, who first sold a 45 percent stake in the brand to what was Valentino Fashion Group in 2007. A group of fashion financiers, including Andrew Rosen, then bought most of that stake in 2011. And private equity firm Castanea subsequently took a minority stake in 2015 that diluted the other shareholders.