Fashion showroom Tomorrow secures funding

International sales platform Tomorrow, which has showrooms in London, Milan, and Paris, and represents established and emerging brands including Markus Lupfer, Derek Lam, Marni, and Rebecca Minkoff, has secured funding from private equity firm Three Hills Capital Partners.

Three Hills has invested 15 million pounds into the showroom to allow the fashion platform to continue being a key destination for buyers searching for the best brands the fashion market has to offer, as well as assist the company to open additional showrooms, form strategic partnerships and pursue strategic acquisitions. The first project will be the opening of the New York office.

The funding has also allowed Tomorrow to complete a management buyout, enabling the management who currently own 50 percent, to buy out the remaining shareholders, with chief executive officer and controlling shareholder Stefano Martinetto at the helm.

Tomorrow opened its first showroom in London in 2008 and has since developed into one of the world’s leading fashion sales platform, which has a business model that is a mix between a multi-brand showroom, a logistics and distribution centre and a multi-service marketing company.

The showroom focuses on all key market segments: high-end womenswear and menswear, contemporary womenswear and menswear and accessories, including women's jewellery, and currently represents around 50 fashion brands from its three permanent showrooms across London, Paris and Milan.

Tomorrow receives investment from Three Hills Capital Partners

It’s biggest showroom is in Paris where the company operates a four-story showroom. In London, Tomorrow has a 3,500 square foot showroom in the Biscuit Building, in London’s East End, while, in Milan, they operate a 15,000 square foot space. They will also be joined by a 10,000 square foot showroom in New York’s Chelsea at the end of January.

During recent years the company has consistently grown financially, with EBITDA reaching in excess of 3 million pounds in 2015 with a target to more than double in the next five years.

Stefano Martinetto, chief executive and controlling shareholder of Tomorrow said: “I am delighted to have the THCP team on board for the next exciting step at Tomorrow. THCP and I have been talking about the changing landscape in the unconsolidated Wholesale Distributions and Sales business in fashion and how to tackle the massive opportunity we see in scaling up and adding services to the industry.

“I am equally happy about what we achieved in such a short period of time thanks to the constant and inspiring exchange of thoughts with my partners Giancarlo Simiri, Matt Clark, Jens Grede, Erik Torstenson along the others. Indeed, I am glad they decided to retain a minority stake in the business.”

Mauro Moretti, founder and managing partner of Three Hills Capital Partners, added: “We are excited to back Tomorrow’s management team in the next phase of growth of their business. We believe the company has been able to gain a unique competitive positioning in the fashion industry thanks to its ability to source successful brands, its geographical footprint and the innovative way it covers the full value chain. Once again, THCP has delivered a tailor-made capital structure solution in an off-market deal.”

Images: Tomorrow Showrooms