Liz Claiborne completes sale of Mexx

The Gores Group, a leading Los Angeles-based private equity firm, has announced that it has acquired a majority stake in Mexx International from Liz Claiborne. The transaction, which closed today, November 2, confirmed that the Gores

Group will own 81.75% of the international lifestyle brand, and Liz Claiborne Inc. will retain 18.25%.

The new joint venture will offer significant opportunities for Mexx, as The Gores Group brings operational experience as well as capital to the fashion retailer. The transaction will strengthen the position of the company, and will allow it to focus on rebuilding the store portfolio, rolling out a new store concept, product development, and marketing. The retailer has also announced that Thomas Grote will continue in his role as Chief Executive Officer for Mexx globally and Lloyd Perlmutter will continue to lead Mexx in Canada.

"Taking the Mexx business private is a logical and important step. We have identified a winning product and merchandising direction that re-activates the strong positive attributes of the Mexx brand, and we are gaining traction in Europe and continuing to build on our strong presence across Canada,” says Grote, Chief Executive Officer of Mexx. “The new partnership between Gores and Liz Claiborne will give us the ability to fully carry out our work and maximize Mexx’s full potential."

Alec Gores, Founder and Chairman of The Gores Group, added: "The Gores Group believes that the apparel sector is ripe with opportunities as is evident by our continued investment in this sector. Mexx is a great brand that has a strong management team led by former Esprit president Thomas Grote, and we are thrilled to add it to our growing portfolio of companies. This transaction serves as a prime example of our ability to apply our extensive carve-out experience to the retail sector, and we see an excellent opportunity to create value and build a great brand."
 
Mexx was founded in 1986, and designs clothes and accessories for men, women and children, as well as products including fragrances, carpets and bed linen. The company joined the Liz Claiborne group in 2001, the same year it launched its e-commerce site. Now the retailer has 1,100 stores and over 500 retail and partnership stores worldwide, and employees more than 3,000 people in 55 countries.

Images: Mexx ‘Stardust’ collection