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Tomorrow Ltd., the London-based distributor and brand incubator, is being sold to Progetto 11, parent company of Italian e-commerce firm The Level Group.
Financial details of the transaction were not disclosed, but controlling shareholder Three Hills Capital Partners is understood to have taken a significant haircut on its investment in the firm, which has faced challenges linked to Brexit, the Covid-19 crisis and the deterioration of the wholesale fashion market.
“The focus of the board throughout this process has been to guarantee protection and continuity for the business,” founder Stefano Martinetto told The Business of Fashion.
Tomorrow Ltd. began as a showroom and distributor before expanding its services and repositioning itself as a brand incubator for designer labels. The group acquired equity stakes in several brands, taking over product development and production in addition to distribution, while founders remained in control of design, image and communications.
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Tomorrow’s 2024 annual report to the UK Companies House registry lists short-term liabilities of £56 million ($75 million) and just £1.2 million in cash on hand. Annual revenues fell 8 percent to £63 million.
Relationships between Tomorrow and the brands in its stable have deteriorated as the group allegedly fell behind on payments to certain designers. Coperni founders Arnaud Vaillant and Sebastien Meyer pulled out of Paris Fashion Week in February, saying the brand had not received the necessary resources to put on a show.
Last week, Martine Rose announced she was cancelling production of her brand’s latest collection. Tomorrow has since contradicted her statement, saying production would proceed as planned.
It remains to be seen whether Tomorrow’s designers, who also include Charles Jeffrey Loverboy, will stay on with the group’s new owners. Industry sources say Coperni’s co-founders and Martine Rose both submitted bids to take back control of their businesses in recent months, which were not accepted by the group.
The Level Group is an e-commerce and logistics platform serving dozens of global luxury brands. It also owns brands including Italian footwear maker Scarosso and La Double J, which sells fashion and homeware.
Additional reporting by Lei Takanashi.
