Vera Wang and WHP Global discuss the 35-year-old luxury brand’s new chapter

“It’s exciting. Who would have thought it? said Vera Wang Monday morning after an agreement to Global WHP acquisition of its 35-year-old luxury lifestyle brand has been revealed.

In a phone interview with Wang and Yehuda Shmidman, chairman and CEO of WHP Global, the two spoke animatedly about plans for the future and the direction they envision for the company. Hospitality was high on Wang’s list of growth opportunities.

Wang said she wasn’t necessarily actively looking for an investor, but “I’ve probably been looking to grow my brand throughout my career and the life of my business.”

“I have to be honest: I felt like it was the perfect time for Yehuda, for me and for our brand – the synergy and his trust in me. They are growing, and I sincerely mean that. Frankly, I know we’ve generated a lot of branding over the last six or seven years, and I think this is the perfect time for me to execute in a way that I couldn’t have done before. With their tremendous support, it gives me the opportunity to grow in ways I never could have done on my own,” Wang said.

Founded in 1990, the Wang brand today generates more than $700 million in annual retail sales in categories including women’s clothing, wedding dresses, men’s tuxedos and suits, fine jewelry, fragrances and the house, among others.

“In all honesty, it takes funding and a level of expertise, but also energy, in the sense of desire and passion. All of these things are things that Yehuda has in abundance,” Wang said.

WHP Global is a global management company co-founded by Shmidman in 2019 with the help of funds managed by Oaktree Capital Management, Ares Management, Solus Alternative Assets Management and BlackRock. Its brand portfolio ranges from Bonobos, Joe’s Jeans, Rag & Bone and G-Star to Anne Klein, Joseph Abboud, Isaac Mizrahi, Warners, Toys “R” Us and Babies “R” Us.

Shmidman told WWD: “It’s the epitome of ‘1 + 1 equals 5.’ What Vera has built is one of a kind, what the Vera Wang brand is is one of a kind and Vera Wang is a legend and one of a kind. We partner with an infrastructure of over $7 billion in revenue and are active in over 50 countries,” he added.

Shmidman said he and Wang discussed globalization in Latin America, Asia and the Middle East, to which Wang responded: “We’ve been global, people don’t really realize that.” We have been in China for 25 years. We will have eight independent bridal stores with our partner in China. (There are currently seven). We’ve had seven stores in Japan for probably 20 years.

For the past 35 years, Wang said her business has been self-funded, although she has business partners. In 2006, Wang led acquisition discussions with companies including Liz Claiborne Inc. and St. John, before striking a lucrative licensing deal with Kohl’s for Simply Vera, Vera Wang in 2007. Wang, a savvy dealmaker, is known for taking its time before closing deals.

When asked what attracted him to the Vera Wang brand, Shmidman responded with one word: “Everything.” He said he had admired and studied the brand for some time. “Vera has already built its brand in many countries, and there is still a lot of potential for growth. When you think about the global fashion industry and what Vera Wang means to people and the emotional connection with people, it’s all about the future. It’s all about what we can do together,” he said. He said Wang would not only continue as founder and creative director of her brand, but would be “a significant shareholder in WHP Global.”

Citing opportunities for the brand, Shmidman said that when you think about Wang’s company DNA, everyone will say marriage. “There are so many aspects of fashion already built, and more to come, and of course there is home, but there is more,” he said. Wang added that she has lived in both a hard household and a gentle household for years, with a thriving linen and towel business, “not only at Kohl’s but at Macy’s.” It also has a licensing deal with Waterford Wedgwood. “The future remains gift and wedding registries, and the amount of products we continue to create in crystal, plates, bone china and silver. All these things have been going on forever,” Wang said.

Wang revealed that one of the biggest opportunities in their projects is hospitality. “It’s one of the most important categories I’ve ever been able to tackle. I got sketchy offers,” she said. Wang said she has owned a signature suite at the Halekulani in Hawaii for more than 15 years. And there were times in her life when she almost closed a deal in Singapore for a Vera Wang hotel and chapels for weddings. “A lot has happened over 35 years, it has never been the right time or situation for me. But my first concern has always been my core business and my skills. This (deal) allows me to start exploring other areas that I would never have been able to get into,” Wang said.

Wang said she would like to create hotels, some of which might be bridal-focused and others style-focused. She loves being local and bringing a modern style sensibility to the country she is in while respecting its heritage. “I have had so many experiences in Italy and France, in Hong Kong, Shanghai, Taiwan, Bangkok…. I just think there’s a lot to offer there. Sure, the bride is a bit of a tease, but I think that’s a very important part of hospitality. I don’t know of a hotel opening right now that doesn’t want to attract a large event. There are very few who are taller than the bride,” she said.

When asked if she would like to sign a license for high-end ready-to-wear, Wang said yes.

“That could happen, couldn’t it, Yehuda?” It will happen,” Wang said.

Shmidman added: “The reality is that the opportunities are almost endless, in the best way possible. What begins in marriage extends to all fashion, extends to all interiors, all lifestyles, and now you are the first person to hear about the vision of hospitality.

When asked if Vera Wang’s staff would remain intact, Shmidman said they had signed the deal but had not yet concluded it. All the details and particularities will be available after the closing, scheduled for the new year. When asked specifically about his modus operandi when taking over a business, such as Rag & Bone, and whether the infrastructure remains intact, Shmidman said yes. “It’s all about growth; What’s amazing about it being built already and how can we expand and grow? » He said that over the past six years, the WHP has grown from zero to over $7 billion. “With Vera and other initiatives, I wouldn’t be surprised if we exceed $8 billion next year.” The company has five offices around the world.

Wang believes he has created a unique business for a fashion company.

“It’s moving. We are an emotional company. We dress women on the most important days of their lives for their audience: their friends, their family, their loved ones. I don’t mean giving birth to your first child isn’t emotional, I mean for your most public moment. When you think about the number of weddings I have performed at all levels, over 35 years, I can honestly say as an ex-skater, that I won the Olympic gold medal for the number of weddings attended I have attended, the number of brides I have attended. got dressed. We are truly based on a sense of romance, a sense of commitment and optimism. The most optimistic thing you can do is get married,” Wang said.

Wang said she will continue to do deals both at the high end and at stores such as Kohl’s and Zales. She has just signed new initiatives with Jared and Zales, and has new fragrances in the works with Coty.

“This is an opportunity for me to adapt what it takes to build a business. I didn’t have any investors, and I did it self-funded, and I didn’t have any partners until now. And you know better than me how difficult it is,” Wang said. She said it was her 55th year in fashion, she just celebrated her 75th birthday and it was her 35th year in business. “All three of these steps happened this year,” said Wang, who had to leave the call because she had to take a call with the White House.

When asked what it was, she replied: “I have no idea. It’s anyone’s guess.

Consultants believe the acquisition makes sense for both parties.

Robert Burke, chairman and CEO of Robert Burke Associates, said: “They (WHP) are really trying to go after a portfolio of premium brands like Rag & Bone, G-Star and Joe’s Jeans. What’s unique about Vera’s business is that it has always been very focused on being a lifestyle brand and a brand with licensing potential. She was early with the Lenox mattress and table top offering. She tapped into this bridal market and realized that it had many facets. If she couldn’t make it, she partnered with someone who could.

“It undoubtedly remains the most recognized wedding brand internationally. I think there’s still a lot of room for his brand to grow,” Burke said.

Andrew Jassin, Managing Director of Jassin Consulting Group, said: “Stuart (Kreisler, Director of Jassin Consulting Group) and I have had a long relationship with Vera Wang. We created the licenses for fine jewelry, wine and prosecco, as well as a few other extensions. Although Vera Wang has many successful licensing partnerships, we believe she has been relatively conservative in her licensing. I think this is a brilliant move on the part of WHP; Vera Wang is a truly global brand with incredible consumer connectivity. WHP will expand Vera Wang’s bandwidth through its professional licensing and management team. It’s a win-win situation for everyone involved.