Differential Brands Group

The story of Differential Brands Group is one of rapid transformation through ambitious acquisition. It began in 2016 when Joe's Jeans Inc., after merging the brands Hudson Jeans and Robert Graham, renamed itself Differential Brands Group under the leadership of CEO Michael Buckley. The company's stated strategy was to build a diversified portfolio of premium consumer brands. The most significant event in the company's journey occurred in October 2018. In a transformative move, Differential Brands acquired a large portion of Global Brands Group's North American business for approximately $1.2 billion in cash. This acquisition brought a massive portfolio of licensed brands, including powerhouse names like Calvin Klein, Tommy Hilfiger, and Under Armour, under its umbrella. Concurrent with this monumental purchase, the company rebranded itself as Centric Brands Inc. Jason Rabin, formerly of Global Brands Group, took over as CEO to lead the newly expanded entity. This move was designed to create a large-scale North American brand platform with pro forma annual revenues projected to exceed $2.3 billion. However, the massive debt taken on to finance the acquisition, combined with the market disruption caused by the COVID-19 pandemic, created significant financial pressure. In May 2020, less than two years after its transformative acquisition, Centric Brands filed for Chapter 11 bankruptcy protection. The company emerged from bankruptcy in October 2020 as a private entity, having shed hundreds of millions in debt and now under the ownership of its lenders, including Blackstone and Ares Management.