LA casualwear label Velvet acquired by Adastria

Velvet, a California-based contemporary apparel company best known for the brand Velvet by Graham and Spencer is to be acquired by Japanese multi-brand apparel company Adastria.

The Japanese group, which operates 21 brands across Japan and Asia, is targeting the North American market with its second investment in the country. In April 2016, Adastria acquired a minority interest in Marine Layer, Inc, an upcoming apparel company based in San Francisco.

Masa Matsushita, representative director and chief operating officer, Adastria Co., Ltd. said: "Velvet is a distinguished brand in the US contemporary market, and we are delighted to welcome Velvet to the Adastria group. This latest acquisition allows us to establish a strategic presence in North America and in the world of contemporary fashion, as we seek to transform Adastria into a leading global apparel company.”

Velvet by Graham and Spencer is known for its modern, sophisticated staples with laid-back California attitude, both for women and men. Headquartered in Los Angeles, Velvet has 8 retail stores in the US, as well as one in London at St Christopher’s Place. In addition to being sold at its standalone stores the collection also has a strong market presence through premium department stores and high-end specialty stores both in the US and abroad.

Adastria acquires Velvet by Graham and Spencer

Henry Hirschowitz, co-founder and chief executive officer of Velvet added: "This is a great opportunity for both companies. Velvet will provide a solid platform for Adastria, allowing the company to expand its presence in the North American market. In addition, Velvet will greatly benefit from Adastria's extensive resources which will enhance our product range and appeal in a greater way to our Velvet customer.

“Furthermore, with Adastria's knowledge in retail and online, we feel strongly that further opportunities for Velvet will materialise. We are extremely fortunate and honoured to become part of the Adastria family of brands."

Adastria have stated that it believes that its investments in Velvet and Marine Layer will “strategically enhance” its global brand portfolio, and added that it’s plans for Velvet includes accelerating the brand’s growth, especially in direct-to-consumer channels.

Adastria is a Tokyo-based multi-brand apparel company founded in 1953. It operates 1,358 retail stores in Japan and 108 stores overseas. Its 21 brands including apparel, lifestyle and restaurant businesses. It is one of the largest apparel companies in Japan with revenue of approximately 1.8 billion dollars in 2016.

Images: Velvet Facebook