Womenswear retailer Aritzia Inc. is looking to break into the menswear market by purchasing a majority stake in athletic brand Reigning Champ.
Announced Monday, the deal sees Aritzia acquire 75 percent of Reigning Champ, valuing the company at $63-million. Despite owning a majority of shares, Aritzia doesn't seem to want to change much about the streetwear company, however it will open new Reigning Champ stores in New York, and expand its e-commerce and wholesale business.
“Reigning Champ’s position in the men’s landscape is different from Aritzia’s position in the women’s landscape,” Aritzia chief executive officer Brian Hill told The Globe and Mail. “Reigning Champ is a little higher-priced, it’s a little more scarce. We’re going to make sure that that positioning is held in the marketplace.”
The current Reigning Champ team, including co-founder and CEO Craig Atkinson, co-founder and vice-president of manufacturing Chris Nordee will stay at the company for approximately five years. The last 25 percent of shares will be held by Reigning Champ’s management, before being handed over to Aritzia in three instalments, happening between 2024 and 2026.