New York-based Alloy is going ahead with plans to spin off the catalog/retail portion of its business. The yet-unamed company will consist of the Delia’s, Alloy, and CCS teen apparel, sports gear, and accessories brands; a fourth catalog brand, extreme-sports gear merchant Dan’s Competition, is being sold to XP Innovation, owned and operated by Dustin Wilson, William Cartwright, and Steve Kalsch, members of the Dan’s Comp management team. The spin-off, in which Alloy shareholders will receive 100% of the common shares, is expected to be completed by the fourth quarter.
Alloy’s other division, which provides media and marketing services targeting teens and young adults, will continue to operate under the name Alloy Media + Marketing. Matt Diamond will remain CEO of Alloy; Rob Bernard, the CEO of Alloy’s Retail and Direct Consumer division, will be CEO of the new company.
“The investment in our merchandise assets has created the most substantial direct marketer to the youth market,” Diamond says. “With these investments and the strength of the [CCS, Delia’s, and Alloy] brands, we can leverage our direct marketing success to the much larger retail market. Over time we will be able to assess the return on our merchandise investments and believe the best way to capitalize on the merchandise opportunity is through the announced spin-off.”