Hanky Panky, the 48-year-old intimate apparel company best known for “The World’s Most Comfortable Thong” is changing ownership.
Crown Brands Group, a newly formed brand management firm, has acquired Hanky Panky in partnership with Rafar Group, the parent company of Gelmart International. The acquisition cost wasn’t revealed.
Hanky Panky founders Gale Epstein and Lida Orzeck, who had been looking to sell the business, will continue to play a pivotal role in shaping the brand’s future. Both founders will join Hanky Panky’s board of directors to ensure the brand’s signature aesthetic and commitment to quality remain in tact. Epstein will have an advisory role in design.
Under the partnership, Rafar Group will serve as the core operating partner, leveraging more than 70 years of experience in the intimate apparel industry to oversee product design, development, e-commerce operations and distribution. The partners will collaborate on marketing strategy and execution, allowing Crown to focus on brand strategy and global licensing while using Rafar’s best-in-class capabilities to drive operational and product excellence.
Rafar, which specializes in private label, has such brands as Kindly (exclusive to Walmart) and Sugarcup and licenses Motherhood Maternity. The company has been a frequent winner of Walmart Vendor of the Year, and a 2019 FEMMY Award Winner as Manufacturer of the Year.
This transaction marks a significant milestone as Crown’s first acquisition, establishing the anchor asset for a diversified portfolio of iconic consumer brands. Crown seeks to acquire and elevate heritage brands, leveraging deep retail expertise and capital backing from G72 Holdings, the family office of Raymond Gindi, whose family cofounded Century 21 stores.
“Hanky Panky is the definitive example of the type of brand we are building our platform around — one with authentic heritage, category leadership and incredible customer loyalty,” said Raymond Dayan, chief executive officer of Crown Brands Group. “As our inaugural acquisition, this deal sets the standard for our portfolio strategy. By combining Crown’s retail relationships and brand management focus with Rafar’s operational excellence, we are positioned to unlock significant growth for Hanky Panky while honoring the quality that millions of women trust.”
Dayan told WWD that he became aware of Hanky Panky through an investment bank, which was hired by Hanky Panky to run the process to find a buyer. “Hanky Panky has long been a category-defining force in the intimates market. When the opportunity arose to acquire the brand, we recognized it as a rare heritage asset anchored by a truly iconic hero product – ‘The World’s Most Comfortable Thong,’” said Dayan.
For nearly five decades, Hanky Panky has maintained a devoted following with one of its Signature Lace Thongs sold every 10 seconds globally. The brand is distributed in more than 2,500 top-tier boutiques, major departments stores and e-commerce platforms.
“Our priority is building the brand’s DTC and wholesale presence while protecting its premium, full-price integrity,” said Dayan.
A look from Hanky Panky.
Courtesy of Hanky Panky
“We are honored to partner with Crown Brands Group to carry forward the legacy of a brand that has defined comfort and quality for generations,” said Yossi Nasser, CEO of Rafar Group. “Rafar’s track record of building intimates brands like Lively demonstrates our ability to resonate with today’s consumer. We see tremendous opportunity to expand Hanky Panky’s reach and introduce the brand to new audiences while maintaining the exceptional comfort and quality the brand is known for.”
In a joint statement, Epstein and Orzeck said, “We built Hanky Panky on a foundation of comfort, quality and female empowerment, and it was vital to find partners who respect that DNA. We trust Crown Brands Group and Rafar Group to steward his legacy. Their combined vision gives us great confidence that Hanky Panky will continue to thrive and innovate in this exciting next chapter.”
In an interview Thursday, Nasser said the main reason they wanted to acquire Hanky Panky “is because we love the brand.
“We love what they did with the brand. It’s been around for a long time, and we feel that legacy brands have place right now in retail. We love the story. It’s similar to our story. We’re a family-owned business that’s a private company, and these are two incredible women who started this brand,” said Nasser.
When asked how Hanky Panky fits in with their other intimate apparel brands, Nasser said, “It doesn’t, which is why we like it so much. I think it really differentiates it. And our goal is to really take care of it.”
While Rafar Group’s brands have more mass market distribution, Hanky Panky is sold in stores such as Nordstrom and Bloomingdale’s, and their own e-commerce site.
“I’m actually looking to bring it back to its roots and really solidify the story and make it front and center. I’m not looking to make any significant changes, but really bring it back toward its heritage because I feel there’s such a strong heritage, and we will enhance that,” said Nasser.
Nasser said Hanky Panky is known for the thong and its lace products. Hanky Panky’s underwear is “one size fits all,” said Caroline Levy, president of Rafar Group. Levy said more than 20 people will be joining Rafar, such as their head of sales and head of finance and they will keep Hanky Panky’s current office at 45 West 25th Street. Nasser said they also look to expand Hanky Panky’s international distribution.
Manufacturing will remain where it makes sense, said Nasser. Hanky Panky manufactures in the Dominican Republic, Colombia and the U.S. Rafar Group manufactures in China, Vietnam, Bangladesh and a lot is done in the Philippines.
Nasser said Crown is looking to bring in other licensees of adjacent categories. For example, he can envision having licenses for loungewear, swim and fragrance. Hanky Panky has a long history of collaborations which they will look to continue, said Levy. Over the years, Hanky Panky has collaborated with such designers as Prabal Gurung, Monique Lhuillier, and Cynthia Rowley, as well as Stony Clover Lane, among others.
Levy added that they will also look to open stores. Hanky Panky previously had a store in New York at 370 Bleecker Street in 2022, which was a 600-square-foot “jewel box,” complete with a thong wall covered with panties in every color.
Nasser declined to reveal how much they paid for the company. He said that Rafar is basically the anchor licensee and bought the operating assets in the company. Rafar also invested in the intellectual property in a significant way. He said it’s a stock deal, and once the deal closes, it’s effective immediately. Crown is buying the IP and will lead the branding efforts and category expansion.
Dayan said his background is in investment banking and private equity. “I’ve done brand acquisitions in the past, and I thought that there was a real opening or a real white space in the market.” He said he seeks to buy brands that the consumer knows and love. “Iconic brands that we have an opportunity to help them grow, while maintaining brand equity is very important,” said Dayan.
“We saw Hanky Panky as an opportunity to do that as long as we had the right partner, and we thought Gelmart was the right partner,” said Dayan. He said Crown is very interested in apparel acquisitions, but also seeks a diversified portfolio.
Wedbush Securities served as financial adviser and Morrison Cohen and Sills Cummis & Gross acted as legal advisors to Crown Brands Group and Rafar Group. Consensus served as financial adviser and Perkins Coie acted as legal adviser to Hanky Panky.
In 2016, Rafar Group/Gelmart International cofounded and incubated Lively, a direct-to-consumer lingerie brand that was acquired by Wacoal International in 2019. Rafar Group also operates FullStrideVentures, an innovation arm focused on sustainable materials including the sugarcup, the world’s first plant-based bra cup made from sugarcane. Rafar operates three manufacturing facilities in the Philippines under Rafar Manufacturing.
