Newly formed Consortium Brand Partners just announced it has acquired a 70% majority ownership stake in Reese Witherspoon’s Draper James fashion brand for an undisclosed amount. Witherspoon will stay on with the brand and join Consortium’s Draper James board.
This is the premier acquisition by the strategic investment firm founded by Cory Baker, Michael DeVirgilio and Jonathan Greller, who worked together at Marquee Brands before launching Consortium to “reshape the retailer-brand relationship.”
Witherspoon launched the brand in 2015 and named it in honor of her grandparents, Dorothea Draper and William James Witherspoon. Its fashion style embodies her down-home Southern roots.
“My grandparents taught me everything I know about gracious Southern living,” she said. “From them, I learned to dress and act like a lady, to take pride in my home, to reach out to help a neighbor, and to always invite everyone in for a visit,” and to serve them sweet iced tea, I might add having maternal grandparents from the South too.
Draper James offers a full range of clothing and fashion accessories, including hats, footwear, handbags and jewelry all with signature Southern charm. It also has a limited selection of kitchen and bath items, which begs for further exploration by this lifestyle brand. It is eyeing pet accessories, children and “mommy and me” designs as well.
Originally a digitally-native brand, the company operates three stores, including a flagship in Nashville, TN, one in Lexington, KY and in the Nashville Airport.
And in 2022 it inked a deal with Kohl’s for an exclusive popularly-priced fashion line called Draper James RSVP. Kohl’s has also tested the brand’s appeal in home and found it promising.
Now, with Consortium’s backing, it plans to turn on the juice to distribute Draper James more widely to premium department and specialty stores and internationally as well.
Power Players
One would be tempted to see the brand as just another celebrity cashing in on their fame with private equity vultures riding their coattails, as Reuters reported, “Some celebrity-studded deals work out well, but many turn fame to shame.”
But this is not such a star-studded celebrity deal. Consortium is a strategic, not just a financial investor. “My partners and I built and grew a very successful portfolio of 13 brands at Marquee,” Baker shared with me. Marquee now includes BCBGMaxazria, Bruno Magli, Dakine, Emeril Lagasse, Martha Stewart, Pea in the Pod, Sur la Table, among others.
“We learned through our careers how to dig in and do our due diligence to listen carefully to customers to find brands and retailers that really speak to them,” he said, adding that it is critical to avoid brands that are just “trendy,” and to find ones that have staying power.
“Draper James fills a void in American style, that is consistent, feminine and beautiful. It’s authentic to its core,” he continued, and added that his grandfather, who was in the fashion business, told him, “Just remember in fashion, as in most things in business, America starts west of the Hudson River.”
As for future investments, Baker says Consortium is “category agnostic” and will look across all categories and verticals to find potential partners that have a strong customer connection. “My partners and I have been in this business for quite a while. When things are for sale, we get the phone call. But some of the best opportunities are the ones not being shopped.”
Draper James isn’t new to the equity investment world, having raised $10 million in series B funding in 2015, led by Forerunner Ventures and JH Partners and Stone Canyon Industries. At the time, Draper James’ co-founder Seth Rodsky said this investment would take the company to the “next level,” and now it is taking another next-level step with Consortium.
During my discussion with Baker, he didn’t express any grand vision for Draper James, rather Consortium will rely upon the top-notch leadership team Witherspoon put together.
They include CEO Erin Moennich, who hails from Bloomingdale’s and LVMH; CFO/COO Sarah Foley, who worked with PwC before joining Draper James; and head of design Kathryn Sukey, who served with Kate Spade, Coach and Liz Claiborne.
But by acquiring a majority stake in Draper James, the biggest get for Consortium is Reese Witherspoon, who will remain a partner and join Consortium’s Draper James board to “guide its strategic direction and growth.”
Investing In People, Not Product
Not unlike her Elle Woods character in Legally Blonde, Witherspoon combines formidable intelligence, business savvy and an iron will. She is ranked number 59 on Forbes’ 2003 Self-Made Women list, with a net worth of $440 million.
Besides commanding top-dollar for acting gigs, her wealth grew exponentially upon the sale of her media company Hello Sunshine to Candle Media backed by Blackstone
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Witherspoon explained the media company’s vision in a statement: “I started this company to change the way all women are seen in media. Over the past few years, we have watched our mission thrive through books, TV, film and social platforms.”
Since Candle Media’s acquisition, Hello Sunshine has stepped beyond media with the acquisition of The Home Edit, a home-organizing business offering in-home services and products to conquer clutter. It was founded by Netflix
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Breaking through the increasingly noisy media and retailing worlds takes expert storytelling and Reese Witherspoon has proven she’s excellent at it. “If you want to change the stories, you need to change the storytellers,” she declared.
And the Consortium team is delighted to have her on their side. “The Draper James brand is about women, and it celebrates women,” Baker said.
“When we first met Reese, she’s everything you would expect and want her to be in a person. She’s genuine, she’s real. She’s smart, she’s savvy, she’s thoughtful, she’s confident, she’s our clan. And she has her finger on the pulse of what women like, what excites, entertains and brings them joy, and what women believe in,” he concluded.
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