A new venture focused on accelerating growth and profitability in the luxury apparel sector has acquired a majority stake in Vince Holding Corp. (VNCE) from affiliates of Sun Capital Partners, Inc. The new venture, P180, was co-founded by Christine Hunsicker, founder and CEO of CaaStle, Inc., and Brendan Hoffman, the former CEO of Wolverine Worldwide, Vince, Bon Ton, and Lord & Taylor and other top luxury retail brands.

“P180’s acquisition represents a transformative opportunity for VNCE. With this transaction, we will gain the operational expertise and cutting-edge digital capabilities needed to drive the brand’s future success,” commented Michael Mardy, chairman of VNCE. “On behalf of the Board and the organization, I would also like to thank Dave [Stefko] for stepping into the interim CEO role for the past year. Through his leadership, the company has continued to execute and deliver results by operating a healthier full price model. We are glad to have Dave remain on the Board and are excited to welcome Brendan back to lead the organization into its next chapter.”

In conjunction with the P180 Acquisition, Hoffman is expected to assume the role of CEO of VNCE, effective on or around February 3, subject to finalization of his employment terms. With this transition, David Stefko is expected to step down as interim CEO of VNCE and continue to serve on the VNCE Board of Directors. In addition, Matthew Garff resigned from the VNCE Board of Directors in connection with the P180 Acquisition.

“VNCE is the perfect partner for P180; the brand’s dominance in the luxury contemporary market aligns seamlessly with our acquisition strategy,” said Hoffman. “In addition, as VNCE has evolved its operating model, we believe having access to the technology and team of CaaStle, founded by Christine Hunsicker, my co-founder at P180, will further advance the company’s momentum in driving improved profitability while enhancing its omni-channel experience.”

Hoffman emphasized that he has a strong connection to the Vince brand, having served as VNCE CEO for five years.

“I am excited to lead the team again as we continue to unlock new growth opportunities, drive innovation, enhance the brand’s market position, and focus on monetizing the company’s inventory to ensure continued long-term success.”

This acquisition reportedly marks the third strategic deal for P180 since its inception in 2024 and follows its recent investment with the Altuzarra fashion label and digital partnership with the multi-brand premium retailer elysewalker.

P180’s core mission is to invest in or acquire brands and retailers that stand to benefit from digital expertise and inventory monetization.

VNCE Significantly Reduces Debt
Simultaneously with the P180 Acquisition, an indirectly wholly owned subsidiary of VNCE, V Opco, LLC, amended its existing credit agreement with Bank of America, N.A. The amendment consents to, among other things, the change in control in connection with the P180 Acquisition, as well as a partial pay down of the subordinated debt with SK Financial Services, LLC, an affiliate of Sun Capital, through increased borrowings under the ABL Credit Facility. On the same day, V Opco paid $15 million to SK Financial Services, LLC using proceeds from the ABL Credit Facility, which resulted in a pay-down of $20 million under the Sun Debt Facility.

In addition, P-180 acquired and assumed $7 million of the loans outstanding pursuant to the Sun Debt Facility and immediately thereafter cancelled such $7 million.

Following the Sun Debt Paydown and P-180 Debt Forgiveness, the outstanding principal amount of subordinated loans is reduced by approximately $27 million with $7.5 million remaining outstanding under the Sun Debt Facility, which will continue to accrue payment-in-kind interest in accordance with, and otherwise be subject to, the terms and conditions therein.

Immediately following the P-180 Acquisition, P180 beneficially owned approximately 65 percent of all outstanding shares of common stock of VNCE and affiliates of Sun Capital continue to beneficially own approximately 2 percent of the company’s outstanding common stock.

As part of the terms to the above transactions, P-180 agreed to reimburse the company for certain fees and expenses incurred in connection with such transactions, including the company’s legal fees as well as the consent fee to BofA.

Vince Holding Corp. is a global retail company that operates the Vince brand women’s and men’s ready to wear business.

Image courtesy Authentic Brands Group