>> Theory founder Andrew Rosen led a group of 20 investors in a deal that was finalized Friday, giving them ownership of a stake in Proenza Schouler. WWD reports that the group invested between $10 and $20 million in exchange for a minority stake equal to that held by Proenza Schouler's management. By comparison, Permira bought a 45 percent stake in the label — which it no longer holds — in 2007, for $3.7 million.
Apparently little of the new cash will be going straight to Jack McCollough and Lazaro Hernandez; they are said to have passed up opportunities for a bigger payday in order to maintain more control over the label.
So where is the money going? It's speculated that before the designers venture into new tiers — like, say, a diffusion line — they'll focus more on accessories, retail, e-commerce, and potentially denim (they have collaborated with J Brand in the past). Earlier this year, Proenza Schouler CEO Shirley Cook also suggested that they've been considering a fragrance launch.