Guess, once a staple in malls across the US, is considering a deal that would remove its stock market ticker from public trading markets.
The company has received a bid of around $633 million from WHP Global, the same company that owns popular brands like Toys R Us, Isaac Mizrahi, Vera Wang, and Anne Klein.
Guess would be an entirely different brand for WHP: it is a mid-tier fashion brand known for its denim, apparel, and accessories.
It came into hundreds of American malls after exploding onto the scene in the 1980s with its ‘3-zip Marilyn’ light wash jeans.
A small, red triangle with the company’s name was stitched into one of the back pockets.
For years, the clothing company has attempted to regain attention through shocking and iconic ad campaigns for years.
The iconic store featured A-listers like Amber Heard, Claudia Schiffer, and Drew Barrymore in a series of provocative promotions.
Guess has been making headlines with its bold ad campaigns, which have featured a look-alike of Anna Nicole Smith named Sydney Sweener and Jennifer Lopez in a bikini, catching the attention of stunned audiences.
Major mall staples, including high and low-end brands, are reevaluting their business models
Despite the buzz created by these ads, Guess has not seen a significant increase in customer interest at its stores across the nation this year. Store visits in February have dropped by almost 40% in New York and 29% in New Jersey, based on data from Placer.AI.
Shops in California (up 7 percent), Colorado (up 9 percent), and Michigan (up 16 percent) saw more customers enter their locations.
For WHP, the potential purchase includes a takeover of 57 percent of Guess’ stock at $13 a share.
The other 43 percent would be owned by the company’s co-founders and CEO.
No stores are expected to close, and the company said there would be ‘no material change’ to its clothing during the potential transition. It also said a deal is not finalized, and that Guess’ board is weighing their options.
Retail experts said the sale could help WHP expand its ownership of nostalgic brands that have faced slowing consumer interest.
‘This is a typical play from WHP Global,’ Neil Saunders, the managing director of retail at GlobalData, told DailyMail.com.
‘They see Guess as a brand that they can grow and develop through their operating model and distribution network.’
Amber Heard was part of 2011 Guess advertising campaign
Drew Barrymore also posed for the fashion brand
Claudia Schiffer joined a series of A-listers posing for the mall-favorite’s commercials
Plus, Guess and WHP have worked together before: in April 2024, the companies piled money together to buy designer bag store Rag & Bone.
That acquisition paid off immediately for Guess’ earnings, giving the company a 13 percent revenue growth boost at the end of 2024, and beating Wall Street expectations.
But the acquisition wasn’t enough to draw consistent, excited customers, Saunders warned.
‘Guess is well known but it has potential for expansion, and WHP want to execute on this,’ he added.
‘However, they will need to inject more energy and excitement into the Guess offer and expand distribution of the brand.’
But Guess’ decision comes amid huge shakeups in the fast and designer fashion industries.
Multiple retailers are struggle with slowing retail sales, higher-than-expected inflation numbers, and predictions that a record-number of stores will shutter.
At the top end, Versace, Gucci, and Miu Miu are all swapping out top executives after multiple rocky years of in the fashion business.
But entry-level corporations are facing even more existential problems.
Mall traffic is still trending downward after years of shrinking interest for in-person retail.
Major players like Temu and Shein have completely changed the game with their low-cost, fashionable online stores (however, their company models are currently under threat with impending tariffs.)
Slowly dying malls have contributed to a boom in store closures across the US.
Forever 21, another staple of mid-2000 malls, announced its second bankruptcy in five years this week.
Liberated Brands — which operated Billabong, Quiksilver and Volcom — also filed for bankruptcy earlier this year.
Both brands said all stores will shut down.
Department stores are also feeling the burn, with multiple retailers expecting sales slow downs this year.
Kohl’s, for example, predicted a cloudier yearly forecast than Wall Street had expected. The company said it is likely to see sales slowdown between five and seven percent this year.
Experts believe more than 15,000 stores will shutter this year, almost double the amount of shops that closed in 2024.
