Benzinga | May 13, 2021 01:47PM EDT

Ralph Lauren Sells Club Monaco Brand To Private Equity Firm

Ralph Lauren Corp (NYSE:RL) has sold its Club Monaco brand to the private equity firm Regent, L.P., for an undisclosed sum.

What Happened: Club Monaco is a casual clothing retailer with more than 140 locations worldwide. The company was founded in Toronto in 1985 and acquired by Ralph Lauren in 1999.

In a press statement, Ralph Lauren described the sale of Club Monaco as being part of its Fiscal 2021 Strategic Realignment Plan, which included a review of its portfolio to determine which brands are poised for sustainable growth.

"As we increase our focus on our core namesake brands, we want to ensure the Club Monaco brand is also well-positioned for long-term success," said Patrice Louvet, president and CEO. "We are confident that Regent is the right home for Club Monaco to realize its full potential, as they will be able to leverage their strategic and operational expertise to continue Club Monaco's growth."

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What Happens Next: Beverly Hills, California-based Regent's investments include Escada, DiamondBack, Redline, La Senza, Brands4Friends, Plainville Farms, Sassoon, Sunset Magazine, Lillian Vernon, HistoryNet and the Sightline media portfolio of 18 newspapers and magazines.

"Club Monaco is a beloved brand with a modern style, loyal customer base and long runway for growth," said Michael Reinstein, chairman of Regent. "We see tremendous opportunity for Club Monaco and are excited to leverage our retail and e-commerce expertise to build upon the strong brand that the Ralph Lauren team built over two decades of stewardship."

RL Stock Action: At last check, Ralph Lauren was trading at $129.46, up 1.11%. The stock is trading closer to its 52-week high of $142.06 than its 52-week low of $62.37.

(Photo by Raysohno / Wikimedia Commons.)