In a deal in that would let Farfetch grow its premium sneaker and streetwear offerings, the eCommerce retailer said on Wednesday (Dec. 12) that it is acquiring Stadium Goods for the enterprise value of $250 million. The arrangement, which could close in the first quarter of next year, is subject to “customary closing conditions,” the company said in an announcement.
“We are thrilled to welcome Stadium Goods to the Farfetch family,” Farfetch Founder, CEO and Co-Chairman José Neves said in the announcement. “Having already collaborated with its exceptional team via the Farfetch marketplace, it is clear that there is a great opportunity for our two companies to leverage each other’s strengths to go after a larger share of an exciting and fast-growing segment of luxury fashion.”
Since April, Stadium Goods has been a Farfetch marketplace participant and has had “strong sales growth since its introduction to the platform,” according to Farfetch. With the deal, Farfetch said the company’s current management team will continue to head up the company, and Stadium Goods will remain a standalone brand.
Stadium Goods stepped into the arena in 2015 as a single New York store and grew into a fairly large digital business. That was a much larger outcome than John McPheters and Jed Stiller – its two founders – were ever expecting. Their aim was to design a minimalist, well-stocked destination for sneaker enthusiasts with all levels of interest.
“There was a time when you’d walk into a sneaker boutique, and if you didn’t fit the part, you might get laughed out the door, or you wouldn’t get help,” McPheters said at the WWD Digital Forum in September. “It never felt comfortable, even if you were a consumer that was supposed to be there.” The goal, then, was to create an eCommerce website that was so thoroughly stocked that the destination would be welcoming to many different parties.