Sandow, owner of Fred Segal, has partnered with equity investor Evolution Media Partners (Evolution), and has hired veteran retail chief Paul Blum to lead the expansion of the iconic California lifestyle brand. Terms of the agreement were not disclosed.
Blum, best known for leading the growth of global brands such as David Yurman, Kenneth Cole and Juicy Couture, has been named chief executive officer, and will be based in Sandow's New York headquarters at Rockefeller Center. Evolution is a joint venture between Evolution Media Capital (EMC), an entertainment, media and sports merchant bank formed in partnership with Creative Artists Agency (CAA); TPG Growth, the middle market and growth equity investment platform of global investment firm TPG; and Participant Media, the global entertainment company founded in 2004 by Jeff Skoll.
Leading entertainment and sports agency CAA will provide expertise in the areas of licensing, branding, digital strategy, content creation and beyond.
Since 1961, Fred Segal has been steeped in Hollywood culture and is known as the style destination for everyone from celebrities to locals. The retail icon has discovered and launched some of the hottest brands in beauty and apparel.
“Fred Segal has maintained its authenticity for more than 50 years. Working with powerhouse partners like Evolution, CAA, TPG and Participant Media as well as Paul Blum, an experienced CEO with deep roots in retail will allow us to reinvent the retail experience across America and the rest of the world,” said Adam I. Sandow, chairman and CEO of Sandow.
The company has already announced several new growth initiatives, including expansion into markets from Las Vegas to Tokyo, as well as branded products and designer collaborations.
Together, the partners envision a major reinvention of the luxury shopping experience, under the Fred Segal brand, which will combine fashion with dining, entertainment, cultural events and health and wellness programs in footprints of up to 50,000 square feet. The team is targeting up to 10 next-generation Fred Segal lifestyle centers in the U.S. and abroad over the next five to seven years.
“The convergence of fashion, technology and media has created a great opportunity to leverage Fred Segal's Southern California celebrity heritage,” said Blum, who has spent his career building global iconic fashion brands. “I'm very excited to partner with Sandow, an innovation-rich brand and media company, and our new investors Evolution Media Partners, to build a new and engaging customer experience in the luxury sector.”
“We see in Fred Segal a special opportunity for a lifestyle brand that has already established itself as one of luxury, fashion and the always imaginative California spirit,” said Rick Hess, Co-Managing Partner of EMC. “Paul brings more than 25 years of experience leading some of the world's best-known consumer product companies. We couldn't have more confidence in his ability, strategic vision, passion for innovation and deep understanding of design, manufacturing and retailing to lead Fred Segal to the next level of growth.”
While sites for the first full-scale Fred Segal lifestyle locations are still being developed, some elements of the new concept can be seen at its new anchor location in the newly-renovated Tom Bradley International Terminal at LAX, and will be previewed at the Fred Segal Collective, a partnership with SLS Hotel & Casino Las Vegas, opening in August 2014. The seven Fred Segal-branded retail experiences located throughout the property mark the first time a single brand partner has occupied all of the retail space in a hotel.
The stores at the SLS will provide a brand immersion experience across select retail categories including men's, women's, accessories, jeans and shoes. A Fred Segal concept is also set to open in Japan in 2015, providing another opportunity to introduce consumers to the new vision for the global Fred Segal brand.
With three Los Angeles locations, Fred Segal is synonymous with LA style and casual chic, attracting celebrities and locals alike with its highly curated selection of merchandise. Fred Segal will open seven stores in Las Vegas in August 2014 and in Tokyo and other locations across Japan in 2015.
