The continued growth of Supreme

Investments and new stores

Investing in Supreme

The Carlyle Group reportedly brokered a deal worth $500 million

The news broke last week that Supreme founder James Jebbia had sold a stake of the company to private equity firm The Carlyle Group. According to sources, the stake is as high as 50%, or $500 million, meaning the valuation of Supreme joins the exclusive Billion Dollar Club of private companies valued over $1 billion.

James Jebbia spoke exclusively to Business of Fashion regarding the partnership with The Carlyle Group, saying: “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. Working with Carlyle allows us to concentrate on doing what we do best and remain in control of our brand, as we always have.”

Whilst the investment from The Carlyle Group will ensure Supreme expands in the right direction – more stores for example – the private equity firm is well-known for ensuring rapid growth of the business and will no doubt be looking to sell their stake within three to five years. Despite the seemingly limited nature of Supreme currently, more stores tends to lend itself to more stock and Supreme will have to work hard to ensure products will still sell out in seconds.

Where will the next Supreme store be?

Europe? America? China?

Supreme officially opened their 11th store in Brooklyn on Thursday October 5, releasing a new yellow camo box logo tee to commemorate it. In an unexpected turn of events, the Brooklyn bogo also made a surprise appearance online a few days later, with 100% of the proceeds of each $54 sale going to United for Puerto Rico, following the devastation left by Hurricane Maria.

The question is, will we be seeing more stores opening in the future? The Brooklyn store is only Supreme’s third store in America, and it’s fifth outside of Japan. With investments into the company, it is almost certain that new stores will be popping up in the years to come and the rumour mill is in overdrive as to where the next location will be. With one in London and Paris already, it may be likely that another EU store will be added to the bill, with some sources putting Italy at the top of the list. Despite having six stores in Japan, the world’s second largest consumer market in China is yet to be graced with a Supreme boutique.

Where would you like to see the next Supreme store open?

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