In the immortal words of Larry David, business has been pretty, pretty, pretty good for Supreme. In fact business has been so good for Supreme that The Caryle Firm, a U.S. investment company, has bought a minority stake in the company.
Supreme founder James Jebbia talked to the Business of Fashion about The Caryle Firm’s investment:
“We’re a growing brand, and to sustain that growth we’ve chosen to work with Carlyle, who has the operational expertise needed to keep us on the steady path we’ve been on since 1994,” said Jebbia in an exclusive statement to BoF. “Working with Carlyle allows us to concentrate on doing what we do best and remain in control of our brand, as we always have.” The terms of the transaction were undisclosed, but Jebbia’s statement suggests Carlyle has taken a minority stake in the business.
The deal marks the first time a top-tier private equity firm has invested in streetwear and underscores the power of the Supreme brand — often dubbed “the Chanel of streetwear” — and its innovative business model, rooted in cool but accessibly-priced product and tightly controlled releases, which “drop” on a weekly schedule that’s far faster than the traditional fashion cycle and designed to drive consumer engagement with a stream of constant newness.
Investment from Carlyle will give Supreme added heft to drive rapid expansion and seize what is undoubtedly a significant growth opportunity.
It will be interesting to see if Supreme’s “rapid expansion” takes away from the quality and rareness of Supreme’s line. That could often doom companies as it did with American Apparel.
But if Supreme is able to stay true to their roots while also becoming more accessible than they will likely keep thriving and remain an elite fashion brand.
