LA-based premium womenswear label Velvet has sold a significant stake in the company to private equity firm Snow Phipps Group.
The investment from the private equity firm is expected to help the business expand into retail and licensing, in which it does not currently have operations. Details of the size of the stake gained by Snow Phipps and the amount of money given were not disclosed.
Velvet’s chief executive officer Henry Hirschowitz will remain with the company but Snow Phipps operating partner Andrew Megibow will join as non-executive chairman.
Hirschowitz said: “There is significant growth opportunity for Velvet in expanding the company into possibly retail and licensing. With the help from Snow Phipps, Velvet is well-positioned with its infrastructure to ride the recovery in the economy.”
Ian Snow, managing partner at Snow Phipps, said: “This transaction represents our firm’s first foray into the apparel industry despite having spent a number of years searching for an ideal investment candidate.”