It’s no secret the retail industry is struggling. But there’s apparently still some semblance of hope for niche apparel companies.
Sentinel Capital Partners, which targets lower-middle-market companies with EBITDA of up to $65 million, has acquired Cabi, a women’s clothing retailer that sells directly through a network of some 3,500 independent stylists. Previously backed by Irving Place Capital and J.H. Whitney & Co. since 2012, the company reported $250 million in revenue last year and is expected to exceed 1 million shoppers attending its home shows in 2017.
Sentinel’s investment continues a trend of recent PE activity in the retail space. Earlier this week, TowerBrook Capital Partners-backed women’s retailer J. Jill set IPO terms that could see it raise $175 million. In late February, Sycamore Partners purchased the intellectual property of bankrupt retailer The Limited, beating out Sunrise Brands with a $26.8 million offer.