The teen retailer on Tuesday announced its latest step in tapping into a much-desired market: The acquisition of Tailgate Clothing Company (TCC) for $11 million in cash and stock.
TCC, which owns vintage sports-inspired brand Tailgate as well as the menswear label Todd Snyder New York, has proven to be a mutually beneficial partner and stepping stone into college towns for American Eagle.
Along with the clothes, American Eagle is bringing some key people to the team, including TCC’s founder and creative director, Todd Snyder, who will join as executive vice president. Snyder opened Tailgate in 1997 and has since worked with big-name brands like Polo Ralph Lauren, Gap and J.Crew.
In response to the acquisition, Snyder said, “Joining a leading American retailer is an exciting step for our brands and provides a strong foundation for future growth… Our new Tailgate store concept is an ideal outlet to integrate AE jeans and apparel, creating a unique lifestyle destination on college campuses.”
TCC’s former president and Snyder’s longtime colleague Jimmy Olsson will accompany him as the new vice president.
In light of the acquisition, American Eagle’s goal is to open up to 200 Tailgate stores at colleges across the U.S., starting with Southeastern Conference and Big Ten colleges, The New York Times reported. The stores will sell jeans and vintage T-shirts from American Eagle and Tailgate respectively.
Interim CEO Jay Schottenstein said both companies are anxious to work together. “As we look ahead, we are optimistic about the upcoming holiday season and will continue executing customer-focused initiatives while delivering returns to shareholders,” he said.