Fabletics owner TechStyle explores $1.5bn sale – sources
TechStyle Fashion Group, owner of the Fabletics athleisure/sportswear line that features celebrity actress Kate Hudson, is exploring a sale that could value it at more than $1.5bn, including debt, people familiar with the matter told Reuters on Monday.
TechStyle has hired investment bank JPMorgan Chase & Co to run an auction for the company, the people said, cautioning that it was possible that no deal would be reached.
The sources asked not to be identified because the deliberations are confidential. TechStyle did not respond to a request for comment, while JPMorgan declined to comment.
El Segundo, California-based TechStyle’s venture capital investors include Rho Capital Partners, KEC Ventures and Trinity Capital Investment.
Founded in 2010, TechStyle made its name inviting consumers to “subscribe” to its various businesses, and then offer them a curated selection of merchandise.
Its businesses include footwear store ShoeDazzle, fashion and accessories store JustFab, and Fabletics, which it launched with Hudson in 2013.
Fabletics remains the marquee brand, with more than 1m members and more than 4m social media followers. The brand is looking to open 12 retail locations this year, bringing its store count to 30.