Ralph Lauren Corporation has recently announced its plans to sell its upscale apparel brand, Club Monaco, to private equity firm Regent LP. The deal, which is set to be completed by the end of June, comes as part of Ralph Lauren’s strategic efforts to refocus on its core brand and ensure long-term success.

Club Monaco, known for its high-end and casual wear, was originally founded in 1985 and acquired by Ralph Lauren in 1999. As a member of the Ralph Lauren family for the past 22 years, Club Monaco has played a crucial role in the brand’s portfolio. However, with a renewed focus on the Ralph Lauren brand, the decision to sell Club Monaco was made in order to streamline operations and maximize growth potential.

Ralph Lauren President and CEO, Patrice Louvet, expressed appreciation for Club Monaco and its team’s contributions to the company. He believes that Regent is the ideal home for the brand, as they possess the necessary expertise in strategy and operations to drive future growth.

This sale is part of Ralph Lauren’s broader Strategic Realignment Plan for fiscal year 2021, which aims to position the company’s core brands for sustainable growth. By prioritizing its online presence and implementing cost-cutting measures, Ralph Lauren is taking decisive steps to elevate its core brand and reduce financial losses. As a part of this plan, the company recently transitioned its Chaps lifestyle brand to a licensed model.

Like many other fashion companies, Ralph Lauren has faced substantial challenges amidst the ongoing Covid-19 pandemic. In the third quarter of 2020, the company reported an 18% decline in revenues compared to the previous year, amounting to $1.4 billion. Despite these obstacles, Ralph Lauren remains optimistic about its future and is actively pursuing strategies to strengthen its position in the market.

Overall, the sale of Club Monaco to Regent LP is seen as a strategic move by Ralph Lauren to refocus on its core brand and pursue sustainable growth. As the fashion industry continues to navigate the uncertainties brought about by the pandemic, companies are actively reevaluating their portfolios and making necessary adjustments to adapt to the changing consumer landscape.

Useful Links:
1. Business of Fashion: Ralph Lauren Sells Club Monaco to Regent
2. Vogue Business: Ralph Lauren to Sell Club Monaco to Regent as Part of Strategy