WHP Global inked a deal to acquire a 50 percent stake in a joint venture holding Lands’ End’s intellectual property.
The brand management firm will pay Lands’ End $300 million enabling Lands’ End to repay a term loan in full and positioning the brand for growth.
Investors approved and sent shares of Lands’ End soaring up over 19 percent, or $2.72, to $16.77, in pre-market trading Monday morning.
The companies said the deal will “unlock the value of Lands’ End’s intellectual property while strengthening the company’s balance sheet.” The term loan stood at approximately $234 million as of Monday. The remainder of the $300 million will be used for general corporate purposes.
To create the joint venture, Lands’ End will contribute all of its intellectual property and related assets associated with the Lands’ End brand, including all of the license agreements entered into in connection with Lands’ End’s licensing business. WHP Global will lead the joint venture’s global licensing strategy and brand expansion, while Lands’ End will retain operational control of its direct-to-consumer and B-to-B businesses.
Upon closing, the joint venture will be owned 50-50 by Lands’ End and WHP Global and will be designed to maximize the value of Lands’ End’s intellectual property, leveraging the brand expertise and global licensee network of WHP Global’s platform.
In addition, WHP Global will initiate a tender offer for up to $100 million of Lands’ End shares at a price of $45 per share.
“WHP Global’s licensing platform is expected to accelerate category expansion, improve partner selection, and enhance long-term royalty generation for the brand,” the company said in its statement. Lands’ End’s existing customers, products, channels and brand presentation will remain unchanged as a result of the transaction.
In certain WHP Global monetization events, such as a qualifying public listing or majority sale, Lands’ End could exchange its interest in the joint interest for equity in WHP Global, allowing stockholders to participate directly in WHP Global’s future. Lands’ End said it is optimistic that WHP Global’s platform will deliver “strong returns to its stockholders and looks forward to potentially participating in its future upside.”
Lands’ End net revenue was $317.5 million for the third quarter, a decrease of $1.1 million. Adjusted net income was $6.5 million, up from $1.8 million in the year-ago earlier.
In May 2025, Lands’ End Inc. said it was exploring strategic alternatives, including a sale, merger or similar transaction to maximize shareholder value. The decision by the board appeared to be a response to pressure exerted by billionaire investor Edward “Eddie” Lampert, a major shareholder at the time, who in April 2025 sent a letter to the board advocating for a sale. An August 2025 filing with the Securities and Exchange Commission showed Lampert’s ESL Investments and related entities owned approximately 56 percent of the common stock.
Lands’ End was bought by Sears in 2002, which was then merged with Kmart in a mega merger orchestrated by Lampert. But as the retail giant struggled, Lands’ End was spun off as a stand-alone company in 2014 while the combined Sears and Kmart went bankrupt in 2018 and eventually disappeared almost entirely.
WHP’s expanding brand portfolio includes Vera Wang, Rag & Bone, Toys “R” Us, Joe’s Jeans, G-Star, Anne Klein and Bonobos.
Josephine Linden, chair of the Lands’ End board of directors, said in a statement: “This joint venture represents a fantastic opportunity for Lands’ End and will enable an even brighter future for the company and brand. After carefully reviewing the full range of strategic alternatives available to the company, the board determined that this structure delivers Lands’ End stockholders superior long-term, risk-adjusted value by combining immediate balance sheet strength with retained upside and operational continuity. We look forward to working with WHP Global to capture the great opportunity ahead.”
Andrew McLean, chief executive officer of Lands’ End, said in his statement: “Partnering with WHP Global in this way is clear recognition of the enduring value of Lands’ End’s extraordinary brand and provides a unique opportunity to supercharge the Lands’ End licensing business. This delivers compelling value for stockholders and enhances the trajectory of this legendary American brand.”
McLean continued: “Our team’s relentless focus on delivering customers the innovative solutions they need, while staying true to our roots, has driven high-quality sales, deepened brand loyalty, and created a platform that serves individuals, families, schools and businesses of all sizes. With a strengthened balance sheet, Lands’ End will be well positioned to execute on opportunities to drive growth and stockholder value, particularly across our direct-to-consumer and B-to-B businesses.”
Yehuda Shmidman, founder, chairman and CEO of WHP Global, said in his statement: “Lands’ End has a rich heritage and deeply loyal customer base. We see significant opportunity to expand the reach of the Lands’ End brand both in the U.S. and globally by leveraging WHP Global’s platform – which today spans 80-plus countries, 225-plus license partners, and, post-close, a portfolio generating more than $8 billion in global retail sales. We look forward to partnering with the Lands’ End team to unlock the brand’s next chapter of growth.”
Yehuda Shmidman
Courtesy
