• by Sarah Mahoney , 6 hours ago

Lands’ End is beginning a new chapter, selling a 50% stake to WHP Global, the brand management giant, for $300 million. In the short term, the joint venture will beef up the catalog company’s balance sheet and ease debt repayments. Longer term, the two companies say the arrangement will speed expansion into new categories and markets, tapping into WHP’s reach into more than 80 countries.

WHP, which will have controlling ownership and gains all rights to Lands’ End intellectual properties, has annual sales of about $7 billion from 15 brands, including Anne Klein, Vera Wang, Toys R Us, Guess and Joseph Abboud.

As part of the deal, WHP will also begin a tender offer for up to $100 million and lead the venture’s strategy and brand expansion. Lands’ End retains full operational control of its existing direct-to-consumer and B2B businesses.

“Partnering with WHP Global in this way is clear recognition of the enduring value of Lands’ End’s extraordinary brand and provides a unique opportunity to supercharge the Lands’ End licensing business,” said Andrew McLean, CEO of Lands’ End, in the announcement. “This delivers compelling value for stockholders and enhances the trajectory of this legendary American brand.”

Lands’ End, based in Dodgeville, Wisconsin, started in 1963 as a sailing supply company, and gained strength for a catalog known for mid-range sweaters, swimwear, tote bags and school uniforms. It has also built up its B2B business, including a long-term partnership with Delta Air Lines.

But it has struggled with declining sales in the tough apparel category, even as it expands third-party partnerships with such retailers as Macy’s and Amazon.

In its most recent quarterly filings, the company said net revenue declined slightly to $317.5 million, below Wall Street expectations.