Established Incorporated has set up a strategic joint venture with ACI Licensing to acquire and manage four well-known lifestyle brands — Badgley Mischka, Rachel Rachel Roy, C&C California and Kay Unger Design.
Financial terms of the deal are not being revealed, according to ACI Licensing’s cofounder and co-chief chief executive officer Andy Cohan. The projected volume for the new entity was also not disclosed, he said.
As part of the deal, the Houston-based Established will maintain 51 percent of the ownership and ACI Licensing will hold 49 percent of the joint venture. The move expands Established’s portfolio beyond the electronics sector and into fashion. The quartet of American labels offer apparel, accessories, footwear and home furnishings.
The joint venture has secured complete ownership of the Badgley Mischka, C&C California, and Kay Unger intellectual property, and a 71 percent stake in the Rachel Rachel Roy brand. ACI Licensing had acquired C&C California in 2016, and Kay Unger in 2017 and linked up with Rachel Rachel Roy around 2019, Cohan said. Under the new setup, those three companies and Rachel Rachel Roy are housed together.
ACI, which is headquartered in Los Angeles and has offices in New York, will continue to oversee the day-to-day operations of the portfolio and maintain existing relationships with manufacturers and retailers.
Badgley Mischka’s cofounders and designers Mark Badgley and James Mischka are said to have exited the company that they started in New York City 37 years ago. They declined to comment Thursday.
Although the two designers are not affiliated with the new venture, they will continue to appear on HSN through their affiliation with the Badgley Mischka dress licensee MJCLK, Cohan said. (MJCLK was founded in 2008 by the designers and Christine Currence, Lara Piropato and Kimberly Lee-Siu as apparel licensee for the Badgley Mischka brand.)
After a humble start in 1988, the duo built up their namesake company by dressing celebrities like Viola Davis, Elizabeth Hurley, Ashley Judd and Helen Mirren for red carpet appearances. Over time, they added multiple licenses including dresses, bridal, shoes, sportswear, swimwear, eyewear, watches and furniture among others. Badgley Mischka is believed to have had more than 40 licenses before this month’s acquisition.
The duo met as seniors at Parsons in New York City and quickly became a couple. Like other students at the school, they were assigned professional critics. Badgley’s were Calvin Klein and Giorgio di Sant’Angelo, and Mischka’s were Jeffrey Banks and Willi Smith. After graduation, they worked independently for other companies before starting their own label. Mischka was hired by Smith for his WilliWear label. After a one-day stint at Arnold Scaasi, Badgley worked for Jackie Rogers and later for Donna Karan.
When they launched their own company, they funded it with money that they borrowed from their families. Instead of going the sportswear route, they focused on the tony social set and created cocktail dresses and evening looks for what John B. Fairchild dubbed “Nouvelle Society.”
Badgley Mischka has changed hands previously a few times. In 1993, Escada became Badgley Mischka’s parent company. More than a decade later, in 2004, the Iconix Brand Group bought the New York-based company from Escada. In 2016, together with their longtime footwear licensee, Titan Industries Inc., which is headed by Joe Ouaknine, and MJCLK, the designers bought back the company from Iconix Brand Group.
Rachel Roy started her namesake company in 2004 and offers ready-to-wear and accessories. A member of the Council of Fashion Designers of America, Roy has served as creative director of her label. She has also helped groom new talent in various capacities and is an adviser to the national nonprofit World of Children that supports underprivileged children. Roy’s daughter with Damon Dash, Ava Dash, is an aspiring model and a cast member of Bravo’s new show “Next Gen NYC.”
Cohan said that Roy and “her family,” as well as Unger, remain at their respective companies. Neither Roy nor Unger responded immediately to media requests Thursday.
Unger has been a stalwart in New York’s fashion industry for more than 40 years as a designer, entrepreneur and philanthropist. She also serves as a trustee of The New School and chair emerita of Parsons School of Design, her alma mater. Unger has been a member of the Parsons School of Design’s board of governors since 2006.
Started in 2002, C&C California plays up 1970s-style relaxed West Coast looks. Founders Cheyann Benedict and Claire Stansfield were inspired by the 1970s surf culture and celebrities from that era like the actresses Raquel Welch and Natalie Wood. The brand got a major boost a year later, after the talk show host Oprah Winfrey featured its super soft T-shirts as one of her “Favorite Things” on-air. As brand awareness increased, C&C California attracted other luminaries like Kate Hudson, Sienna Miller, Rachel Bilson and Nicole Richie.
The ultracasual brand took a more classic turn after it was acquired by Liz Claiborne in 2005. Cashmere sweaters were among the styles that were later added to the mix. In 2008, Perry Ellis International had acquired the brand from Liz Claiborne. Five years later the company introduced a signature sport collection. ACI Licensing first connected with C&C California in 2015 through an acquisition, and then added six new licenses for the brand. Many more have since been added.
In a statement, Established’s chief executive officer Hall O’Donnell said, “By leveraging our expertise in brand revitalization alongside ACI Licensing’s deep industry knowledge in lifestyle manufacturing and licensing, we are positioned to maximize the growth potential of these well-known brands.”
