LVMH may have already nailed down the next young(ish) design company to join its luxury fashion empire: Proenza Schouler.
Sources tell WWD that LVMH is in talks to acquire at least a 40 percent stake in the label. Neither party immediately responded to our requests for comment.
For a relatively young brand (it was founded and 2002), Proenza Schouler has gone through some pretty big investors. First was Valentino Fashion Group, which helped jumpstart Jack McCollough and Lazaro Hernandez's promising line in 2007. VFG was then purchased by Permira, and in 2011 Permira's stake was sold to a group of investors led by Theory founder Andrew Rosen. It's believed that LVMH will acquire the stake owned by Rosen's group, which amounts to around 40 percent.
It would make sense: Rosen's track record is in contemporary brands, and Proenza Schouler is a rapidly expanding luxury label with a pretty big accessories business -- just the sort of thing LVMH knows how to work with. WWD also makes the case that the luxury conglomerate has been courting the brand for a while, and says the designers were even approached for the Givenchy job that eventually went to Riccardo Tisci.
If the report is true, it could certainly be a mutually beneficial relationship for both parties if Rosen et al. are willing to part with their stake.