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Respected Contributor
Posts: 3,412
Registered: ‎06-29-2016

Re: Lori Goldstein now at Macy's!

[ Edited ]

This is a new development.   It appears that Lori is buying all of her assets, property and names back from Xcel Brands,  effective June 30.  Xcel and Lori have been in arbitration concerning QVC appearances and withholding of payouts by Xcel.

 

 

On May 22, 2024, Xcel Brands, Inc. (the “Company”) and Gold Licensing, LLC, a wholly-owned subsidiary of the Company (“Gold” and, together with the Company, the “Xcel Parties”), entered into a binding term sheet with Lori Goldstein (“LG”) and Lori Goldstein Ltd (“Buyer” and, together with LG, the “LG Parties”) with respect to the sale by Gold to Buyer of all of the assets acquired by Gold pursuant to the Asset Purchase Agreement (the “APA”) dated Mach 30, 2021 and any intellectual property created thereafter that is based on such amounts (collectively, the “Assets”).

 

The assets consist of (i) all trademarks related to “Lori Goldstein,” including her name, usage and likeness and related intellectual property, (ii) the LOGO trademarks and related intellectual property, all URLs, social media accounts and domain names and (iii) the May 1, 2013 agreement between QVC, Inc. and Buyer, as amended and previously assumed by Gold.

 

The purchase of the Assets shall be effective June 30, 2024 (the “Closing Date”).

 

During the period through the Closing Date, LG shall remain employed by the Company and has agreed to make all of her scheduled appearances on QVC through the Closing Date.

Honored Contributor
Posts: 13,609
Registered: ‎10-09-2012

Re: Lori Goldstein now at Macy's!


@Commoner Exec Mr Wilkes wrote:

This is a new development.   It appears that Lori is buying all of her assets, property and names back from Xcel Brands,  effective June 30.  Xcel and Lori have been in arbitration concerning QVC appearances and withholding of payouts by Xcel.

 

 

On May 22, 2024, Xcel Brands, Inc. (the “Company”) and Gold Licensing, LLC, a wholly-owned subsidiary of the Company (“Gold” and, together with the Company, the “Xcel Parties”), entered into a binding term sheet with Lori Goldstein (“LG”) and Lori Goldstein Ltd (“Buyer” and, together with LG, the “LG Parties”) with respect to the sale by Gold to Buyer of all of the assets acquired by Gold pursuant to the Asset Purchase Agreement (the “APA”) dated Mach 30, 2021 and any intellectual property created thereafter that is based on such amounts (collectively, the “Assets”).

 

The assets consist of (i) all trademarks related to “Lori Goldstein,” including her name, usage and likeness and related intellectual property, (ii) the LOGO trademarks and related intellectual property, all URLs, social media accounts and domain names and (iii) the May 1, 2013 agreement between QVC, Inc. and Buyer, as amended and previously assumed by Gold.

 

The purchase of the Assets shall be effective June 30, 2024 (the “Closing Date”).

 

During the period through the Closing Date, LG shall remain employed by the Company and has agreed to make all of her scheduled appearances on QVC through the Closing Date.


 

@Commoner Exec Mr Wilkes   Good for Lori!!!  

 

I believe Isaac Mizrahi bought all of his assets back from Xcel as well.  In fact, Isaac is no longer an Xcel employee, now he's an Xcel part owner.

Respected Contributor
Posts: 3,412
Registered: ‎06-29-2016

Re: Lori Goldstein now at Macy's!

[ Edited ]

I agree that this is likely a good move for Lori.

 

In addition to the dispute about QVC appearances,  I imagine that she didn't appreciate Xcel slapping her name on the licensed garments at Macy's that she didn't "design."

 

Now she has recovered full control over the use of her name.

Honored Contributor
Posts: 12,865
Registered: ‎05-18-2017

Re: Lori Goldstein now at Macy's!

Very interesting @Commoner Exec Mr Wilkes .  Thanks for the update.

Respected Contributor
Posts: 3,412
Registered: ‎06-29-2016

Re: Lori Goldstein now at Macy's!

[ Edited ]

For Xcel, this is going to cause a significant revenue and cash flow problem.  LOGO was a reliable and significant source of income,  40-50% of quarterly revenue. 

 

They have Christie Brinkley's new line at HSN, but it has no track record.

 

They need an established,  reliable brand now to stay afloat.  I wonder if they'll go after another one of QVC's or HSN's exclusive names.

Respected Contributor
Posts: 4,876
Registered: ‎12-07-2014

Re: Lori Goldstein now at Macy's!


@Commoner Exec Mr Wilkes wrote:

This is a new development.   It appears that Lori is buying all of her assets, property and names back from Xcel Brands,  effective June 30.  Xcel and Lori have been in arbitration concerning QVC appearances and withholding of payouts by Xcel.

 

 

On May 22, 2024, Xcel Brands, Inc. (the “Company”) and Gold Licensing, LLC, a wholly-owned subsidiary of the Company (“Gold” and, together with the Company, the “Xcel Parties”), entered into a binding term sheet with Lori Goldstein (“LG”) and Lori Goldstein Ltd (“Buyer” and, together with LG, the “LG Parties”) with respect to the sale by Gold to Buyer of all of the assets acquired by Gold pursuant to the Asset Purchase Agreement (the “APA”) dated Mach 30, 2021 and any intellectual property created thereafter that is based on such amounts (collectively, the “Assets”).

 

The assets consist of (i) all trademarks related to “Lori Goldstein,” including her name, usage and likeness and related intellectual property, (ii) the LOGO trademarks and related intellectual property, all URLs, social media accounts and domain names and (iii) the May 1, 2013 agreement between QVC, Inc. and Buyer, as amended and previously assumed by Gold.

 

The purchase of the Assets shall be effective June 30, 2024 (the “Closing Date”).

 

During the period through the Closing Date, LG shall remain employed by the Company and has agreed to make all of her scheduled appearances on QVC through the Closing Date.


@Commoner Exec Mr Wilkes 

Thanks for sharing specifics.

 

This puts into perspective her newly-enthusiastic newly-frequent appearance on the Q.

 

[As a trial lawyer, wondering who she has representing her? Do we have a name, a firm?]

Honored Contributor
Posts: 10,149
Registered: ‎12-22-2013

Re: Lori Goldstein now at Macy's!


@cindyNC wrote:

I've seen Nina Leonard at Kohls online. I wonder who else is not exclusive to the Q any longer. 


I had no idea Nina Leonard was at Kohls.  I love her dresses.  I have ordered several from HSN.  Thanks for the info.  Kohls is about 10 minutes from my houseSmiley Happy

Honored Contributor
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Registered: ‎03-09-2010

Re: Lori Goldstein now at Macy's!


@cindyNC wrote:

I've seen Nina Leonard at Kohls online. I wonder who else is not exclusive to the Q any longer. 


@cindyNC 

I remember Nina Leonard from the 80s at TJMaxx.  I recall that because I bought a favorite pantssuit (for me) there when I was bedridden with MS and though it was pretty enough to be a pantssuit, it was as comfortable as PJs.

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Posts: 6,157
Registered: ‎01-14-2017

Re: Lori Goldstein now at Macy's!

 

I think these developments are bad news for my beloved brand!

 

This is just my opinion of what's going on, based on my read of the public information available re Xcel Brands which is a public company, which I assume is what everybody is basing their statements on.  I am not a financial maven, but according to my reading of their most recent quarterly statement Xcel is a company in decline trying to reinvent itself, last 5 years the highest price per share was approx $3 in July 2019, now trading at approx $0.70.  Losing money.  Its acquisition of the Logo brand in March 2021 boosted its stock price (went back up to $2.81/share from a low of $0.50 in March 2020 when the world shut down), but it's been downhill since, except for an upward blip in the middle of 2023, I don't know why.

 

Lori's brand earned its target sales for 2023, and Xcel CHOSE not to pay her royalties it admits she earned.  It was after she demanded payment due of almost $1 million and declared Xcel in breach of contract that Xcel decided that Lori was in breach of contract regarding appearances.  So Lori may buy the name back, perhaps using the money they owe her.  The timeline and admission they owe Lori money is in Xcel's disclosures.  My guess is Xcel doesn't have the cash to pay her.  The disclosure states Xcel is uncertain about its ability to continue as a going concern.

 

Someone else wrote that Isaac M owned a piece of Xcel or his name, but that is not what I saw.  Xcel sold 70% of Isaac's brand to a private company call WHP for $46.2 million in cash in 2022, which tells me Xcel is in need of cash.  No word that Isaac has a financial interest in WHP, but they don't have to tell us.  Isaac is just referred to as the Chief Design Officer of his namesake brand, which really means nothing.  We would have to see the employment agreement, if any.  At the time, the Xcel people said that with the sale of 70% of Isaac's brand, Xcel was debt free, but is no longer the case, based on the quarterly March 2024 report.

 

It appears to me based on reading SOME of this document that Xcel is trying to get out of wholesale and go into licensing.

 

So maybe Lori will have to look for a new company to handle manufacturing, which maybe she doesn't want to do, which is why Louis Del'Ollio and others have left QVC.

 

@1Professor the dispute between Lori and Xcel is in arbitration, not the courts.  If she sued them in Court they may go bankrupt, so probably not a good idea.  It looks like their operating cash comes from a loan.  The overwhelming majority of disputes settle, and this looks like where this is going.  I think Lori's is probably a private company, so we wouldn't necessarily know what she is up to.

 

I hope we have Logo for years to come.  Love the clothes!

Respected Contributor
Posts: 4,876
Registered: ‎12-07-2014

Re: Lori Goldstein now at Macy's!

@NYCLatinaMe 

Fabulous sharing.

Thanks for the work of reading through available public documents.

Makes sense.

 

I was initially concerned when Lori sold, it didn't make sense that LOGO would flourish with Xcel. If Lori was still a designer, she'd want the brand to be in good hands.

 

The announcement just sounded like an out-sized million $$ windfall for her, but resting on clouds.

 

I am mindful that Lori created a team that has grown. People. Designers come up with ideas for Lori. Buyers get fabrics, choose manufacturers. Marketing staff sets prices, decides "how many" and "what colors." To name only a few . . .

 

I'm stocked with lots of the earlier high-quality tops, blazers, denim pants. Still buy the blazers in denim, though have enough boyfriend jeans of all styles to open a store.

 

This evening (9 pm California time) will be interesting.

Some are predicting TSV "lavish" but of recent those haven't sold well. 

Love Lori. Will watch.