Dive Brief:
- L Catterton sold its stake in DTC active apparel brand Rhone to a group led by Rhone management and several select investors. While Rhone just announced the news this month, the deal closed in July 2022.
- Rhone closed on a Series D round of financing through a Special Purpose Vehicle fund that provided the capital needed to buy out L Catterton’s minority stake in the clothing brand, per an email confirmation sent by Rhone to Fashion Dive’s sister publication Retail Dive.
- The group of outside investors included such notable business and sports personalities as Charlotte Hornets co-owner Gabe Plotkin; Philadelphia 76ers and New Jersey Devils co-owner David Blitzer; and former NFL quarterbacks Steve Young and Tim Tebow.
Dive Insight:
Rhone said the move has already helped it grow at about twice the rate it was before the investment. With a new infusion of capital, the apparel brand was able to open 11 stores in the last 12 months, nearly doubling its footprint year over year. Rhone will open several more stores before year’s end, giving it 15 locations, per the company.
A brand spokesperson said there wasn’t a “particular reason” for delaying the announcement of the deal, adding that the brand “thought now would be a good time to tell a wider story about how the company has grown and see[n] a lot of success since Nate and Ben Checketts, co-founders of Rhone and brothers, took back control of the company.”
Rhone’s announcement comes as the brand earlier this month announced its intentions to launch a women’s sportswear collection next May under the leadership of Chief Product Officer Kelly Cooper.
Rhone was founded in 2014 by brothers Nate Checketts and Ben Checketts as a premium wellness brand built around performance-driven apparel for men. The company said the strategic move to ink deals with new partners reflects its “dedication to charting an independent course.”
"We are forever grateful for the partnership and support of L Catterton through the years and during this transaction,” CEO Nate Checketts said in a statement. “Closing this financing marks an exciting chapter for Rhone and we are excited about the investors we have added who have enabled us to have full control over the direction of our brand’s future. The infusion of capital also positions us to amplify our retail footprint and invest in key areas that drive our brand's growth and further our mission of building a community focused on a balanced life around both physical and mental fitness.”
