P180 Gains Majority Stake in Vince Holding, Brendan Hoffman to Return as CEO

P180, a newly established venture, has acquired a majority stake in US luxury fashion company Vince Holding (VNCE) for an undisclosed amount. As part of the deal, Brendan Hoffman is set to return as the company’s CEO.

The stake was purchased from affiliates of Sun Capital Partners, marking P180’s third strategic acquisition since its launch last year. Previous investments by P180 include the fashion brand Altuzarra and a digital partnership with the premium multi-brand retailer elysewalker.

Co-founded by Christine Hunsicker, the founder of CaaStle, and Hoffman, P180 is focused on improving financial performance for brands and retailers.

Founded in 2002, Vince operates 47 full-price retail stores, 14 outlet locations, and an e-commerce platform. The brand also offers a subscription service, Vince Unfold, which is managed by CaaStle.

In the third quarter of fiscal 2024, Vince reported a 4.7% decline in net sales, amounting to $80.12 million, attributed primarily to lower direct-to-consumer and wholesale sales.

Following the transaction, P180 has become the beneficial owner of approximately 65% of Vince’s outstanding common stock, while Sun Capital’s affiliates retain about 2%.

Vince chairman Michael Mardy noted that P180’s acquisition represented a pivotal opportunity for the brand, stating that the transaction would provide the operational expertise and advanced digital capabilities needed to drive future success.

Hoffman is anticipated to assume the CEO role around February 3, 2025, subject to the finalization of his employment agreement. He previously served as Vince’s CEO for five years.

As part of the leadership transition, David Stefko will step down from his interim CEO role but will continue to serve on the Board. Meanwhile, Matthew Garff has submitted his resignation from the Board in connection with the acquisition.

Hoffman expressed his enthusiasm for rejoining Vince, emphasizing that the brand’s strong position in the luxury contemporary market aligns perfectly with P180’s acquisition strategy. He also highlighted his personal connection to the brand and shared his excitement about leading the team once again to drive innovation, enhance market positioning, and optimize inventory monetization for long-term success.

In addition to leadership changes, Vince has undertaken significant steps to reduce its debt burden. An indirect subsidiary, V Opco, has amended its ABL Credit Facility with Bank of America to accommodate the change in control resulting from the acquisition.

This amendment has facilitated a partial paydown of subordinated debt through increased borrowings under the ABL facility. As a result, V Opco has repaid $15 million to SK Financial Services—an affiliate of Sun Capital—reducing its subordinated loans by approximately $27 million.

These strategic financial actions aim to improve Vince’s debt position and provide greater financial flexibility and operational efficiency moving forward.

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