Making It with Jon Davids
167 - $800M From Bankrupt Brands | Authentic Brands Group
Jan 28, 2025
Discover how a company is raking in $800M annually by breathing new life into distressed brands like Forever 21 and Juicy Couture. Explore the risks of owning brands without control over manufacturing, likening it to real estate investment. Delve into innovative licensing strategies, leveraging the legacies of icons like Marilyn Monroe and Elvis Presley. Learn how partnerships with contemporary celebrities boost revenue streams and build brand equity in today's competitive market.
17:57
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Quick takeaways
- Authentic Brands Group revitalizes struggling brands by acquiring and managing them, focusing on new management to foster growth.
- Through strategic licensing partnerships and celebrity associations, Authentic Brands Group generates substantial revenue while minimizing operational costs.
Deep dives
Revitalizing Distressed Brands
The business model of Authentic Brands Group primarily revolves around acquiring struggling or distressed brands with potential for growth. They identify brands that are not necessarily bankrupt but have hit growth ceilings, allowing the original owners to offload them for a fresh start. After acquisition, Authentic works to rejuvenate these brands, such as Ted Baker and Aeropostale, by bringing in new management and strategic oversight. This approach enables them to breathe new life into once-popular names, transforming them into profitable ventures once again.
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