GB Merchant Partners’ 1903 Equity Fund, the institutional private equity affiliate of Gordon Brothers Group, has acquired Ashley Stewart, a retailer in the plus-size fashion industry.
Headquartered in Secaucus, New Jersey and founded in 1991, Ashley Stewart currently operates over 200 stores and a complementary e-commerce business.
The company is led by chief executive Laura Weil and president Steve Newman.
"Ashley Stewart is an iconic brand in the plus-size fashion industry," says James Rhee, managing director of GB Merchant Partners. "The brand commands intense loyalty amongst a loyal customer base. By funding the business with a significant amount of permanent capital and no third-party debt, we have given an accomplished management team the resources to expand the store footprint and explore alternative avenues of growth, including licensing, wholesale and e-commerce. We look forward to being part of this new and exciting chapter in the life of Ashley Stewart."
Weil and Newman said: "We have been delighted by the overwhelming and continued support of our existing and new customers, vendors, factors and landlords. Our fall, holiday and spring offerings look terrific, and we are already enjoying the benefits associated with a strong balance sheet. Our employees nationwide share our enthusiasm. We are delighted to be partnering with GB Merchant Partners. They have delivered at every stage of the recapitalization process, and their creativity and perseverance, coupled with deep personal and institutional relationships, enabled Ashley Stewart to embark on a well-deserved brand-building and growth strategy."
The 1903 Equity Fund manages outside institutional capital and takes majority and minority equity positions in middle-market retail and consumer products companies. The fund has over USD270m of committed capital and focuses on special situations, providing financial and operating solutions to companies in transition.
