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current news

Naked: Spending Big On Sports Star, Plans More


(Filed Under wholesale Lingerie News). Naked Brand Group, already significantly invested in using NBA star Dwyane Wade to promote its under wares, has now moved in the direction of using additional sports figures in the same effort.

On the last day of September the company announced it had hired CAA Sports Consulting to “assist Naked in building and managing endorsement, influencer and partner relationships to help drive awareness and interest in the Naked brand and consumer adoption of its products.”

Wade happens to be represented by CAA, a leading sports consultant. Naked said that firm now “will also recruit additional high-profile individuals and influencers to participate in the campaign, assist with future Naked brand awareness initiatives and help Naked identify other corporate strategic partnerships to drive further business growth.”

Wade signed an endorsement agreement with Naked in mid-summer, joined its advisory board and serves as creative director for a collection of men’s and boy’s underwear, undershirts, loungewear, sleepwear and robes to launch in 2016.

While many key portions of Wade’s contract with Naked are not publicly available, an examination of the company’s 10-Q SEC filing for the quarter ended July 31 contains a description of certain payments to a consultant who appears to be Wade.

In a section labeled “Commitments,” the company stated that “In accordance with a negotiated agreement, the Company paid a non-refundable guaranteed advance on royalties of $50,000, and is required to pay royalty fees based on the greater of a pre-determined percentage not to exceed 10% of net wholesale sales.” In all, “The company is committed to minimum royalty payments,” paid annually between 2016 and 2020, totaling $1.3 million.

In addition, a nearby section entitled “Subsequent Events,” noted that “On September 9, 2015, the company granted warrants to purchase 62,500 shares of common stock of the company at a price of $5.11 per share to a consultant of the company pursuant to consulting agreement. The warrants will vest over a term of three years.” The consultant is not named.

But a heavily redacted copy of Wade’s endorsement contract with Naked, which is included in Naked’s SEC filings, stated Wade has been granted a warrant to purchase a number of Naked shares at a specified price. Both the number of shares and price have been redacted from the public copy of the agreement. But the agreement does note that the warrants will vest over a term of three years.

Declared Carole Hochman, Naked’s CEO, “CAA played an integral role in establishing our partnership with Dwyane Wade and we believe can play an even greater role over the next few years in helping us make that partnership and future partnerships as successful as possible.”

A strong emphasis on sports figures would be a significant departure for Hochman who, at the eponymous firm she sold to Komar five years ago, managed a select group of licensed designer brands, including Oscar de la Renta, Lauren Ralph Lauren, Betsey Johnson Intimates, Lilly Pulitzer, Nicole Miller and Tommy Bahama. At her previous firm she was revered as an expert in women’s sleepwear and loungewear.


more wholesale Lingerie News >>

Published 10-01-2015 by Nick Monjo

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