JustFab and ShoeDazzle Merge
JustFab and ShoeDazzle announced that they have entered into a definitive agreement to merge the two industry leaders in a strategic move that will create the worldwide market leader in fashion subscription e-commerce, and redefine the way women shop online.
With the merger, the two brands will be able to expand their customer base in the United States and further accelerate international and category expansion plans, as well as leverage significant scale and operational synergies. The combined company is expected to be profitable in 2014.
"Today we are creating one of the world's largest and fastest growing fashion e-commerce companies, with a clear path to creating a multi-billion dollar fashion company here in Los Angeles," said ADAM Goldenberg, co-CEO of JustFab. "By maintaining the distinct JustFab and ShoeDazzle brands, we will be able to significantly broaden our reach in the United States, and continue to take substantial market share from traditional footwear brands, retail players and e-commerce competitors."
"Both of our brands have seen high growth and success over the last three and a half years, and with the synergies between our complementary businesses, it made sense for us to combine our strengths," said Brian Lee, ShoeDazzle CEO. "This merger gives us the scale to create a truly global, multi-brand lifestyle fashion company."
"Together, we have the opportunity to accelerate growth plans for both brands under the umbrella of a single organization," said Don Ressler, co-CEO of JustFab. "With the combined reach of over 33 million members, and the ability to provide a wide array of products and styling services to women all over the world, we are poised to generate over $400 million in total sales in 2014."
Mr. Goldenberg and Mr. Ressler will serve as co-CEOs of JustFab Inc., which will operate a portfolio of lifestyle fashion brands including JustFab, ShoeDazzle, FabKids and Fabletics. ShoeDazzle President and co-founder MJ Eng will continue running ShoeDazzle, while Mr. Lee will join JustFab's board of directors. As part of the merger, the two brands will be moving in early 2014 to share a new campus in El Segundo.