Tommy Hilfiger, Tommy Mottola Among $10 Million Investors In Evine

Evine, the No. 3 home shopping network, is getting some love from peppy-preppy fashion designer Tommy Hilfiger. Let’s see if this lifts the channel’s credibility.

The company is selling $10 million in stock, at a discount, to a group of investors led by Hilfiger, record mogul Tommy Mottola (diva Mariah Carey’s ex-hubby) and Morris Goldfarb.

The story was also leaked to WWD.

Hilfiger, Goldfarb and Mottola Join Forces to Invest in Evine Live

This initial investment is expected to close within a week, with the stock priced at a 10 percent discount to the previous 15-day average of Evine’s shares. The funds will be used as working capital and for debt repayment.

“Given what I see happening in today’s changing retail landscape, as well as the interactive video commerce world and social media explosion, I believe Evine has the competencies to become the bridge between bricks and mortar and e-commerce for today’s consumer,” Hilfiger said in a canned statement. “I look forward to bringing vision and relationships in the celebrity world to this team to help transform its growth path.”

And in connection with the offering, Hilfiger and Mottola have agreed to join Evine’s new Brand Building Advisory Committee, which is a non-board committee that will advise the board of directors, particularly regarding — big surprise — brand strategy.

If memory serves us, this is not Mottola’s first tango with Evine. He was part of the dissident shareholder group, led by Mark Bozek, that eventually took control of what was then called ShopNBC. Bozek, whose team gave the network its horrid moniker Evine, was later ousted himself.

“There is no better way to bring a brand’s story and vision to life than live video commerce,” Mottola said in his canned statement. “We are thrilled to be investing in a company that has been doing exactly that. We view this as a strategic step into the changing retail landscape by igniting the fire where media and entertainment intersect retail.”

Here’s the dope on the trio.

Hilfiger is the founder and principal designer of Tommy Hilfiger, while Goldfarb is chairman and CEO of G-III Apparel Group, which manufactures and distributes apparel and accessories under licensed brands, owned-brands and private-label brands.

Mottola was the chairman and CEO of Sony Music Entertainment for 15 years, where he was credited with developing such acts as his ex-Carey, Celine Dion, Beyoncé, Jennifer Lopez, Shakira, Bruce Springsteen and Billy Joel. He is now chairman of the Mottola Media Group, partners with Dodger Theatricals, the world’s largest producer of Broadway shows, and a senior advisor to L. Catterton Partners.

In its press release, Evine said, “The company believes that important investments like this can help create strategic alliance opportunities for the Company to maximize shareholder value for all its stakeholders.”

In his canned statement, Evine CEO Bob Rosenblatt said, “It is exciting to have these leading industry icons and executives invest in our company as we seek to build transformative alliances in this ever evolving video commerce marketplace. This investment will help us accelerate our brand building opportunities as well as strengthen our balance sheet. I couldn’t be more excited about working with Tommy Hilfiger again and with media/entertainment mogul Tommy Mottola.”

The investors will receive a six-month option to make an additional equity investment in Evine at a price equal to the company’s five-trading day average price prior to the exercise of the option.

The total number of shares to be issued in this offering, including through the purchase of shares and exercise of the option and warrants, will not collectively exceed 19.99 percent.

Craig-Hallum Capital Group LLC is acting as exclusive placement agent and provided a fairness opinion to Evine’s board.

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2 Responses to “Tommy Hilfiger, Tommy Mottola Among $10 Million Investors In Evine”

  1. Gia Says:

    Maybe they could invest some of that money in new cameras;They all look like they weigh 300 pounds. Get with HD already.

  2. Mary Young Says:

    Agree with Gia they need HD and they also need better clothes. Too much drapey looking witchy stuff.

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