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Denim.LA Announces Digital Brands Group

DSTLD Parent Company Denim.LA Becomes Digital Brands Group
Digital Brands Group is First Of its Kind Portfolio of Direct-to-Consumer Lifestyle Brands

Los Angeles, CA (August 23, 2018) -- Denim.LA, Inc., today unveils Digital Brands Group (DBG), a curated collection of digital-first lifestyle brands. Since 2012, Denim.LA has focused on selling contemporary clothing basics directly to customers via a data-driven omni-channel platform. Under its new moniker, Digital Brands Group will bring together like-minded direct-to-consumer names into one portfolio that shares operational, infrastructure, and data resources as a means to drive down redundant fixed costs and expensive to maintain and grow for direct brands.

The Group will pursue a build and buy strategy, with a plan to launch or acquire one to two brands per year. The brands will have a digital first focus in addition to an omni-channel customer experience, which will include showrooms, pop ups and partnerships with retail brands and department stores.

In order to achieve its strategy, the Group is actively pursuing liquidity options, which includes listing on a public market. “With two conceivable routes toward an IPO in the near future, being able to offer brands an exit strategy presents a lucrative bargaining chip when negotiating acquisition opportunities,” notes Co-founder Mark Lynn. With very few liquidity options for small to medium DtC brands, Lynn believes being publicly traded will attract strong consumer brands who are seeking liquidity and an opportunity to grow their brands in a founder friendly environment.

Already part of the group is the well-established premium denim brand DSTLD (www.dstld.com). The Group is also launching a luxury performance suiting and sportswear brand, ACE Studios, in Q4 2018. ACE will leverage Chief Operating Officer Hil Davis’ experience, which includes founding J. Hilburn in 2012, a bespoke tailored clothing brand which he built to a $55M company in just six years.

The executive team behind Digital Brands Group has been strategically planning the rebrand and expansion for sometime in order to increase existing shareholder, customer, and brand value.

“The portfolio model cuts redundant expenses across our brands, which will drive down fixed costs, generate meaningfully more cash flow, and give our brands and their creative leaders the freedom to focus on product quality, design, and innovation as well as great creative campaigns,” says Davis. With increased funds available to invest in revenue-generating marketing programs, DBG predicts accelerated revenue growth and profitability.

Digital Brands Group’s vision is led by Denim.LA co-founders Corey Epstein and Mark Lynn, as well as Chief Financial Officer Kevin Morris and recently hired Chief Operating Officer Hil Davis. The Group’s experienced executive management team has first-hand experience building and scaling direct brands (DSTLD, Winc.com, J. Hilburn) from the ground up to well over $150M in combined revenue.

Hannah Laverty