Activewear model Out of doors Voices, the direct-to-consumer darling that shuttered all 16 of its retail shops in March, has been acquired by personal fairness agency Consortium Model Companions, in line with a press launch.
Monetary phrases weren’t disclosed, and Out of doors Voices will proceed to promote completely on-line. There aren’t any rapid plans to reopen retail shops, however CBP is bullish on brick-and-mortar retail.
“On the subject of community-based manufacturers and companies, having a little bit of a hub the place folks can meet, contact and really feel the product, and have interaction with retailer associates, is a crucial a part of the storytelling,” CBP Managing Accomplice Cory Baker advised Fortune.
This marks CBP’s second acquisition, after it purchased a 70% stake in actress Reese Witherspoon’s vogue model, Draper James, in September.
CBP is led by Baker, Michael DeVirgilio and Jonathan Greller, veterans of holding firm Marquee Manufacturers, whose portfolio firms embody BCBG Max Azria, Ben Sherman, and Martha Stewart.
The deal additionally places an finish to a monthslong saga that noticed Out of doors Voices—as soon as valued at $110 million—shut all its brick-and-mortar shops, lay off dozens of workers, and shift to promoting completely on-line. Sourcing Journal reported in March that the model had plans to file for chapter.
CBP was drawn to Out of doors Voices’ robust neighborhood and distinctive positioning in an trade closely targeted on efficiency athletes, Baker mentioned in an interview on Friday.
“This was at all times a model that spoke otherwise about getting open air and having fun with the solar and having fun with the neighborhood,” he mentioned. “And that basically known as to us as one thing related and genuine and immune to pattern.”
The rise and fall of OV
Based by millennial entrepreneur Ty Haney in 2013, Out of doors Voices spent the subsequent few years using the direct-to-consumer wave and incomes a cult following—the corporate was valued at $110 million by 2018. In 2020, Haney was pushed out after clashing with executives, and a string of exits adopted. The model’s valuation fell to $40 million that yr.
However the model maintained its robust fanbase, who appreciated its daring aesthetic and community-based strategy to health. In June 2020, entrepreneur Ashley Merrill joined Out of doors Voices as its board chair after her enterprise capital agency NaHCO3 made an funding of an undisclosed measurement within the firm. Merrill invested extra in late 2023, and have become the de facto CEO of the corporate, in accordance to Puck.
In March, Out of doors Voices introduced the closure of all 16 of its retail shops, with solely 5 days’ discover. One former retail worker advised Fortune in March that they have been “blindsided” by the information, whereas one other known as it “a slap to the face.”
The corporate additionally laid off an estimated 80% of its company workforce, together with your entire HR, model, and design groups, three former workers advised Fortune. Out of doors Voices and Merrill disabled feedback on their Instagram accounts following the closures, whereas followers and former workers took to Reddit to lament the dearth of transparency.
“This was a traditional story of an organization who had too many bills and an excessive amount of debt,” Baker advised Fortune. “And sooner or later, even when your gross sales are good, it’s laborious to maintain up when you need to service debt and you need to service dangerous leases.”
‘A brand new day’
The corporate has reinstated some former workers who have been furloughed in March, and extra conversations are underway. Ashley Merrill is not concerned with Out of doors Voices, Baker confirmed, whereas Katie Siano continues in her function as the corporate’s president.
Though CBP hasn’t revealed how a lot cash it’s placing into Out of doors Voices, Baker mentioned it’s now “within the healthiest monetary place it’s ever been in.” With a progress technique and growth plan in place, Out of doors Voices is specializing in product, neighborhood engagement, and getting again to its roots.
In three years, he predicted OV can be greater, more healthy, and carry extra product classes which might be “related and pure.”
“I feel the fanbase must be spoken to,” Baker mentioned. “It’s a brand new day, it’s a vibrant day, and it’s not the identical firm that’s needed to make difficult decisions.”
