Reformation, the renowned sustainable fashion brand known for its commitment to ethical practices, has recently made headlines by announcing a significant business move. The brand has decided to sell a majority stake to global private equity firm Permira, marking a strategic partnership that will fuel its growth and expansion in both domestic and international markets.
The collaboration with Permira represents a major step forward for Reformation, allowing the brand to further enhance its e-commerce strategy, expand its retail footprint, and explore new product categories while staying true to its core values of sustainability. This move comes at a pivotal moment for Reformation, as it seeks to capitalize on its success and take its brand to new heights.
David Brisske, principal at Permira, commended Reformation for its unique positioning at the crossroads of fashion and sustainability. He praised CEO Yael Aflalo for her visionary leadership in building a brand that resonates with today’s conscious consumers and for creating a strong omnichannel presence that sets Reformation apart in the industry.
Despite the sale of a majority stake, Yael Aflalo will continue to lead Reformation as CEO and will retain a significant ownership stake in the company. President Hali Borenstein will also remain in her role, ensuring continuity in leadership and strategic direction. Aflalo expressed enthusiasm about the partnership with Permira, highlighting their shared commitment to sustainability and their expertise in navigating the rapidly evolving consumer landscape.
As Reformation pushes ahead with its global expansion efforts, the brand has recently opened its first international brick-and-mortar store in Canada, with plans for another location in London on the horizon. In addition to physical retail spaces, Reformation is ramping up its global e-commerce presence through a partnership with Global-e, enabling seamless shopping experiences for customers around the world with support for multiple currencies, payment methods, and expedited shipping options.
The sale to Permira was facilitated by financial and legal advisors from Goldman Sachs & Co. LLC, Latham & Watkins LLP, Morgan Stanley & Co. LLC, and Skadden, Arps, Slate, Meagher & Flom LLP. The transaction is expected to be finalized in the third quarter of 2019, subject to customary closing conditions.
Despite the change in ownership, Reformation’s longstanding investor Stripes Group will continue to be a partner in the brand’s growth journey. With a growing portfolio of retail locations across the U.S. and plans for further expansion in 2019, Reformation is poised to reach new customers and solidify its position as a leader in sustainable fashion.
In conclusion, the partnership with Permira represents a significant milestone for Reformation, ushering in a new chapter of growth and opportunity for the beloved sustainable fashion brand.
To learn more about Reformation’s sustainable practices, visit their website here. For updates on Reformation’s latest products and collections, follow them on Instagram here.
