illi News - BILLY REID ACQUIRES KNOT STANDARD'S DTC BUSINESS, EXPANDING MADE TO MEASURE

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The Alabama ~ In a move that will expand its reach and offerings, American fashion house Billy Reid Inc. has announced its acquisition of the direct-to-consumer arm of premium made-to-measure company Knot Standard LLC. This strategic transaction will see Billy Reid taking over eight Knot Standard retail store locations and incorporating made-to-measure options alongside its ready-to-wear collections in a total of 20 locations. As part of the deal, Knot Standard will become a minority shareholder in the combined business under the Billy Reid name.

Founder of Billy Reid, Billy Reid himself, expressed his excitement about this new venture, stating that their shared passion for well-designed products, exceptional customer service, and strong company culture make this an exciting opportunity. He believes that this acquisition will allow them to deepen their product offering and increase brand awareness.

This move comes after Billy Reid's successful made-to-measure business was discontinued during the COVID-19 pandemic. Seeing a significant opportunity to expand this sector of their business, they sought out a partner to relaunch it and found Knot Standard to be the ideal fit. The two brands had already established a commercial partnership in 2023, with Knot Standard supporting made-to-measure services in Billy Reid stores.

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During discussions for a capital raise in Q3 of 2023, an investor proposed the idea of acquiring Knot Standard to Billy Reid. Recognizing the potential for both businesses to join forces, they expressed interest in taking over the direct-to-consumer portion of Knot Standard's business.

CEO Jeff Zens shared his excitement about building upon their existing partnership with Knot Standard and working directly with their eight locations. He stated that they were initially drawn to Knot Standard's high-quality products, similar customer base, and unique business model which complemented their own brand.

With this acquisition, Billy Reid Inc. now owns Knot Standard's retail and online direct-to-consumer business which includes eight stores located in major cities such as New York, Chicago, Los Angeles, and San Francisco. The sales associates and retail management team will also be joining the combined business. Leveraging their expertise in management and operations, Billy Reid plans to grow the business even further. Knot Standard will shift its focus to their AI-powered tech platform, which will remain a separate entity and continue to service Billy Reid and other brands while also being sold in Nordstrom stores.

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CEO of Knot Standard, Matt Mueller, expressed his pride in bringing their cutting-edge, AI-driven custom menswear and womenswear to Billy Reid's esteemed clientele and iconic brand. He believes that this partnership is a fusion of craftsmanship and innovation that will elevate the made-to-measure experience for customers while expanding their reach across the nation.

The two brands share numerous synergies such as price point, product quality, retail footprint, real estate presence, and marketing strategies. This acquisition presents an opportunity for Billy Reid to apply his editorial and fashion-forward designs to a bespoke model that caters to a wider audience. It is expected to fuel more rapid growth for the brand with an influx of capital from new investors and an attractive proposition for potential investors.

Known for making built-to-last clothing that celebrates craftsmanship, Alabama-based luxury designer Billy Reid has received four CFDA awards in the first 11 years of business since its founding in 2001 as William Reid. The premium bespoke approach of Knot Standard aligns well with Billy Reid's DNA, making this acquisition a natural fit for both brands.

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