Adastria Co. Ltd. has acquired U.S.-based Velvet LLC to expand its presence in the North American contemporary fashion market.

Target Information

Los Angeles-based Velvet LLC, known for its Velvet by Graham and Spencer label, has been acquired by Adastria Co. Ltd., a prominent Japanese apparel company valued at approximately $1.8 billion. Velvet has established a reputation as a distinguished brand in the U.S. contemporary market, producing modern and sophisticated apparel that embodies a laid-back California attitude. Founded in 1997, Velvet operates eight retail stores across the United States and is also present in premium department stores and high-end boutiques both domestically and internationally.

Co-founded by Henry Hirschowitz, Jenny Graham, and later joined by Toni Spencer, Velvet has garnered attention through various collaborations with models, including upcoming projects with Kirsty Hume. The management team at Velvet believes that this acquisition will provide a solid foundation for building Adastria's presence in the North American market, leveraging their extensive retail expertise.

Industry Overview

The apparel industry in the United States has experienced a dynamic shift in recent years, driven by changing consumer preferences towards contemporary and su