Digital Brands Group, the US fashion retailer, has acquired American basics apparel brand Stateside for US $ 10 million.
The intent of the Group is to build-up its portfolio of brands in addition to strengthening its financial position.
While talking to media, Hil Davis, CEO, Digital Brands Group, said that Stateside with forecasted revenue of US $ 6 million and US $ 1 million in EBITDA this year, will strengthen the cash flow and profits of Digital Brands Group.
Besides, Digital Brands Group also, reportedly, confirmed that it has secured a US $ 17.5 million equity line of credit from Oasis Capital, which will help the Group pay down debt and finance its capital requirements.
Hil Davis said that the credit line will help the company completely clean up its balance sheet.
Notably, the acquisition of Stateside follows Digital Brands Group’s completion of a US $ 10 million IPO earlier this year.
A debt-free balance sheet has eliminated the financial risks to a great extent, but going forward it will be interesting to see if Digital Brands Group will be able to bring in and maintain profits. And for that a lot will depend on its acquisition plans.
The Group, reportedly, plans to do 2 to 4 more acquisitions in 2021 and 6 in 2022.
Digital Brands Group, known for its curated collection of luxury lifestyle, digital-first brands, owns Bailey 44, Ace Studios, DSTLD and the Harper & Jones.
