Nexus Capital Management Finalizes Acquisition of Coldwater Creek and Soft Surroundings

Nexus Capital Management Completes Acquisition of Coldwater Creek and Soft Surroundings

In a significant move within the retail sector, Nexus Capital Management LP, an alternative asset management firm based in Los Angeles, has announced the completion of its acquisition of CW Holdings, LLC, the parent company of the ever-popular brands Coldwater Creek and Soft Surroundings. This strategic acquisition marks a new chapter for both brands and is expected to leverage Nexus's expertise in managing consumer brands.

The acquisition is noteworthy as Coldwater Creek and Soft Surroundings are well-respected names that cater to women's apparel and lifestyle, particularly targeting customers aged 45 and above. With a focus on nurturing a strong direct-to-consumer relationship, these brands have simultaneously built a loyal customer base thanks to their rich heritage and unique value propositions.

As explained by Jonathan Whitlock, a partner at Nexus, the firm is impressed with the operational prowess and market positioning that Coldwater has developed. He remarked, "Coldwater Creek and Soft Surroundings are brands with rich heritage and a deeply loyal customer base... We are excited to partner with management to continue to foster the brands' unique legacies and capitalize on the significant growth opportunities ahead."

Coldwater Creek, which dates back to 1984, originally started in Sandpoint, Idaho, offering a variety of women’s clothing inspired by the natural beauty of the Pacific Northwest. Similarly, Soft Surroundings, established in St. Louis, Missouri in 1999, is known for its emphasis on comfort, softness, and artisanal design in its clothing and lifestyle lines. Today, both brands operate extensive E-commerce sites alongside traditional catalog sales, positioning themselves effectively in the changing landscape of retail.

The synergy between both brands under Nexus's ownership is anticipated to play a vital role in their future development. David Walde, the CEO of Coldwater, expressed satisfaction regarding the acquisition, emphasizing the strength of the brands and their teams. He stated, “I want to thank our employees, customers, and vendor partners for helping us reach this milestone. Nexus shares our beliefs in what makes these brands special, and with their support, we will continue investing in our product and the experiences we deliver for our customers.”

Additionally, Alex Angelchik, Group Managing Director of Newtimes Group, which formerly owned CW Holdings, conveyed gratitude towards the Coldwater team for their dedication and hard work in developing an impressive platform. He expressed optimism for Nexus's leadership in the years to come, indicating an optimistic outlook on the partnership’s capacity to enhance the brands’ value.

This acquisition not only consolidates Nexus’s position in the consumer brands sector, bringing its depth of experience and extensive network to the table, but also provides Coldwater Creek and Soft Surroundings opportunities to push boundaries and innovate.

The legal and financial advisory for the transaction saw Paul, Weiss, Rifkind, Wharton & Garrison LLP representing Nexus, while Robert W. Baird & Co. Incorporated served as financial adviser. On the other side, Coldwater relied on Greenberg Traurig, LLP for legal counsel and The Sage Group LLC for financial advisory expertise.

With both brands well-established in their sectors, the acquisition is expected to bring renewed vigor and strategic direction aimed at expanding their market reach. The shift from a traditional retail model to focusing more on e-commerce could open new channels for both brands, enhancing the shopping experience while attracting new customers.

For more information about Coldwater Creek and Soft Surroundings, visit their respective websites at www.coldwatercreek.com and www.softsurroundings.com. Meanwhile, Nexus Capital Management’s further initiatives can be tracked through www.nexuslp.com.