Sports Apparel Retailer Lids Sold For $100M To Ames Watson Capital
Genesco-owned Lids, the largest brick-and-mortar retailer of licensed sports apparel, has been sold for $100M to Ames Watson Capital, the owner of the Fanzz retail chain. Fanatics will be a minority owner. Ames Watson Capital has launched FanzzLids Holdings to operate Lids. Sources said Fanatics put up around 10% of the $100M and is solely interested in operating e-commerce for Lids. Most of the more than 1,100 Lids locations are located in shopping malls. Fanzz has around 120 stores. Fanatics officials would not comment. The sale continues the trend of retail consolidation, particularly in the sporting-goods sector. “Most people would think that Fanatics would never buy a brick-and-mortar retailer and they originally rejected the opportunity to buy Lids entirely as not strategic,” said a source. “But a relatively small strategic investment locking up their e-commerce and a fair amount of wholesale business for Fanatics makes a lot of sense, when you remember that 70% of licensed (sales) is still brick-and-mortar.” Some unanswered questions around the sale include how many stores will remain under the new Lids/Fanzz entity, which retail nameplate survives (likely Lids), and how the sale will impact the largest manufacturers of licensed caps: New Era, and ‘47 Brand. Each was a rumored buyer or investor in Lids, since the company announced it was for sale in February.