Are changes ahead at J. Mendel? WWD reported Monday morning that less than five years after The Gores Group invested in the New York-based furrier and red carpet staple, the private equity firm may be looking to sell off its majority stake.
Whether that rumor turns out to be true remains to be seen. A rep for Gores Group did not immediately respond to request for comment, but J. Mendel did confirm to Fashionista that it is considering taking on outside investments at this time.
"J. Mendel and The Gores Group see significant global growth opportunities for the brand, which will require both capital and international partners," J. Mendel CEO Marc Durie said in a statement. "Having received several enquiries from outside parties, we are considering our options under the advice of BDA Partners and Vendome Global Partners.”
Sources for WWD say that Gores Group — which also counts a laser manufacturer, a communications software business and a UK-based bread maker among its portfolio companies — didn't invest enough capital into J. Mendel after acquiring it in August 2010 to grow it significantly. Born as a fur boutique in 1870s St. Petersburg, the brand has since expanded into ready-t0-wear, accessories and bridal. Within these existing businesses alone, there's undoubtedly room for growth.
We'll be watching to see what emerges from this — whether The Gores Group does indeed sell off its stake or whether J. Mendel simply brings on board another investor.
Update: This article has been updated with comment from J. Mendel.