Manchester luxury fashion retailer acquired by London PE firm
London private equity firm Parabellum Investments has acquired Manchester luxury fashion retailer, Hervia, for an undisclosed sum.
Oscar Pinto-Hervia, who founded the business in 1993, will retain a stake in the group and remain as CEO.
Hervia is a luxury fashion e-tailer with an extensive customer base across the UK, Europe, North America, and Asia, as well as a flagship store, Hervia Bazaar, in King Street, Manchester.
It sells clothing, jewellery, and accessories from designers such as Raf Simons, Maison Margiela, Rick Owens, and Yohji Yamamoto.
It was the first retailer to stock debut collections from Alexander McQueen, Helmut Lang, and Hussein Chalayan, among others, and will continue its strong heritage of finding and supporting the next generation of talent in the fashion industry.
Alongside Hervia’s Manchester store and its online platform, the deal also includes the operation of the Adidas Y-3 flagship store in Mayfair, London, which sells the largest selection of Y-3 products to the UK market.
Parabellum, the family office operating as a global private equity firm under the leadership of founder and CEO, Rami Cassis, said the acquisition marks a major diversification of the existing Parabellum Investments’ portfolio which has previously focused on companies in the business-to-business sector.
It also marks Parabellum’s entry into the luxury goods market and recognises the strong future growth potential of the UK’s fashion sector.
As part of the Parabellum portfolio, future strategic objectives for Hervia include plans to forge new partnerships with emerging designers in the UK, France, and Italy, and exploring new segments such as childrenswear. There are also plans to further strengthen the customer experience for Hervia’s clients by investing in the brand’s online platform.
Rami Cassis said: “Hervia has a rich legacy as a brand, strong foundations as a business and is perfectly positioned to benefit from the future growth projections of the UK fashion market.
“As a direct-to-consumer business, it marks a significant addition to Parabellum Investments’ portfolio, which has previously concentrated on the business-to-business sector. I look forward to investing in the business from top to bottom, including improving the customer experience, entering new segments of the market, and adding to an already excellent team.”
Rami Cassis added: “Oscar Pinto-Hervia has created an amazing business and has a natural eye for fledgling industry talent, and he’ll remain a core part of Hervia’s DNA. His vision around sourcing and encouraging young British designers will help us continue discovering the best emerging designers and up-and-coming brands to partner with.”
Oscar Pinto-Hervia said: “It’s an exciting time for Hervia as we look to onboard fresh, new brands and open additional stores.
“I was struck by Rami’s enthusiasm and his growth plans for Hervia align with our ambitious vision for the company. His strong track record of leading and managing companies ensures he’s a great fit to take us forward into the next phase of expansion.”