Theory (brand)
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Theory is a New York City–based men's and women's contemporary fashion
label A label (as distinct from signage) is a piece of paper, plastic film, cloth, metal, or other material affixed to a container or product. Labels are most often affixed to packaging and containers using an adhesive, or sewing when affix ...
which sells clothes and
accessories Accessory may refer to: * Accessory (legal term), a person who assists a criminal In anatomy * Accessory bone * Accessory breast * Accessory kidney * Accessory muscle * Accessory nucleus, in anatomy, a cranial nerve nucleus * Accessory nerve ...
. The brand has 434 retail locations, and global sales approaching $1 billion as of 2021. The company's headquarters and flagship boutique are located in Manhattan's
Meatpacking District The Meatpacking District is a neighborhood in the New York City borough of Manhattan that runs from West 14th Street south to Gansevoort Street, and from the Hudson River east to Hudson Street. The Meatpacking Business Improvement District alo ...
.


Origins and development

In 1997, Andrew Rosen, former CEO of Anne Klein and a
Calvin Klein Calvin Richard Klein (born November 19, 1942) is an American fashion designer. In 1968, he launched the company that later became Calvin Klein. In addition to clothing, he has also given his name to a range of perfumes, watches, and jewellery. ...
executive, launched Theory with co-founder Elie Tahari in New York City as a women's collection, with a focus on comfortable stretch pants. The collection performed well and a men's line was added in 1999. In 2000, a
license agreement A license (American English) or licence (Commonwealth English) is an official permission or permit to do, use, or own something (as well as the document of that permission or permit). A license is granted by a party (licensor) to another part ...
was formed with Link International of Japan, established in 1998, to manufacture, and distribute the brand as well as operate stores under the Theory name in Asia, predominantly Japan. Women's
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s and shoes were introduced in 2003, and launched nationally in the U.S. for Spring 2006. In 2012 The
Council of Fashion Designers of America The Council of Fashion Designers of America, Inc. (CFDA), founded in 1962 by publicist Eleanor Lambert, and headquartered in Manhattan, is a not-for-profit trade association comprising a membership of over 450 American fashion and accessor ...
(CFDA) announces Andrew Rosen as the recipient of the Founders Award given in honor of Eleanor Lambert. Theory makes its first move into France with two store openings in Paris. In 2013 Andrew Rosen and the CFDA spearhead the Fashion Manufacturing Initiative, a project whose ambition is to invest in and guarantee the future of garment factories in Manhattan. In 2014, Lisa Kulson, former vice president and head designer at Theory, returns as creative director of women's design. In 2015, Theory unveils a new logo, its first redesign in 18 years. The branding initiative debuts with the Spring Summer 2015 advertising campaign, featuring Natalia Vodianova with photography by David Sims.


Acquisition by Link International and Fast Retailing

In September 2003, Link International bought an 89%
stake A stake is a large wooden or metal implement designed to be driven into the ground and may refer to: Tools * Archer's stake, a defensive stake carried by medieval longbowmen * Survey stakes, markers used by surveyors * Sudis (stake) (Latin for ...
in the Theory company for $100 million, after Japanese giant textile firm
Fast Retailing is a public Japanese multinational retail holding company. In addition to its primary subsidiary Uniqlo, it owns several other brands, including J Brand, Comptoir des Cotonniers, GU, Princesse Tam-Tam, and Theory. History The company was fou ...
Co. of Tokyo – established in 1963 and owner of the popular
Uniqlo ( ; ) is a Japanese casual wear designer and retailer. The company is a subsidiary of Fast Retailing, Fast Retailing Co., Ltd. Clare Waight Keller is the creative director. History Men's Shop OS was founded in Ube, Yamaguchi. It was rebrand ...
brand – had acquired a 47.1% stake in Link. Rosen received $49 million, retained the remaining 11% in the new company, and was replaced as
CEO A chief executive officer (CEO), also known as a chief executive or managing director, is the top-ranking corporate officer charged with the management of an organization, usually a company or a nonprofit organization. CEOs find roles in variou ...
by Chikara Sasaki of Link but remained president and COO. Tahari was allocated $53 million of the sale and had no shares in the new company which was renamed Theory Holdings. The deal was explained by the fact that the label was to become a truly "global brand".PR Newswire
Andrew Rosen and Elie Tahari Announce Sale of Theory LLC
(9 September 2003)
The Japanese
parent company A holding company is a company whose primary business is holding a controlling interest in the Security (finance), securities of other companies. A holding company usually does not produce goods or services itself. Its purpose is to own Share ...
has since then traded under the name of Link Theory Holdings and went public in 2005. Fast Retailing had held a 32.32% stake in LTH since 2004. In spring 2009, Fast Retailing acquired the remaining stock and LTH became a fully owned
subsidiary A subsidiary, subsidiary company, or daughter company is a company (law), company completely or partially owned or controlled by another company, called the parent company or holding company, which has legal and financial control over the subsidia ...
of Fast Retailing.


Link Theory Holdings

Theory's owner, Link Theory Holdings (LTH), bought fashion house Helmut Lang from
Prada Prada S.p.A. (, ; ) is an Italian luxury fashion house founded in 1913 in Milan by Mario Prada. It specializes in leather handbags, travel accessories, shoes, ready-to-wear, and other fashion accessories. Prada licenses its name and branding ...
and German fashion labe
Rosner
in 2005. Rosner's European production and distribution network was to help expand the Theory label in the European market over the following few years. However, in the end of 2008, Link Theory sold Rosner to a German private equity firm reasoning that LTH was to penetrate the European market by means of their own European subsidiaries. Theory is Link Theory's
core Core or cores may refer to: Science and technology * Core (anatomy), everything except the appendages * Core (laboratory), a highly specialized shared research resource * Core (manufacturing), used in casting and molding * Core (optical fiber ...
brand. Other brands include Helmut Lang, PLS+T and footwear label Jean-Michel Cazabat. For the Japanese market, exclusive sub-labels of the Theory brand, such as 'Theory men', 'Theory luxe', 'Theory petit' have been created. Link Theory is headquartered in Aoyama, Tokyo.


Stores

At the end of February 2016, Theory boasted a total of 489 stores (including franchise). In North America, Theory has stores in
Aspen Aspen is a common name for certain tree species in the Populus sect. Populus, of the ''Populus'' (poplar) genus. Species These species are called aspens: * ''Populus adenopoda'' – Chinese aspen (China, south of ''P. tremula'') * ''Populus da ...
,
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, Aventura,
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,
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- Highland Park Village, East Hampton,
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, Westport, Los Angeles, New York City, Palm Beach,
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,
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and San Francisco. The Theory label's headquarters and design offices are located in New York City's Meatpacking District, at 2 Gansevoort Street. The building also houses a Theory
flagship store A flagship is a vessel used by the commanding officer of a group of navy, naval ships, characteristically a flag officer entitled by custom to fly a distinguishing flag. Used more loosely, it is the lead ship in a fleet of vessels, typically ...
.


Collaborations

In 2016, Theory pursued a collaboration with fellow fast-retailing brand
Uniqlo ( ; ) is a Japanese casual wear designer and retailer. The company is a subsidiary of Fast Retailing, Fast Retailing Co., Ltd. Clare Waight Keller is the creative director. History Men's Shop OS was founded in Ube, Yamaguchi. It was rebrand ...
touted under the slogan "Japanese engineering, New York Style." The collection was a capsule men's wardrobe featuring 4 different styles of shirts in 4 colors each and received widespread positive feedback for providing the same minimalist philosophy at a significantly lower price point. In 2019, Theory formed an alliance with Girl-Up, a leadership initiative launched by the United Nations Foundation which aims to support leadership development plans that help every girl reach her potential. Accordingly, they introduced a unisex t-shirt to donate a percentage of sales to the initiative.


Lawsuit

In 2006, Tahari sued his former partner Rosen (as well as Link Theory Holdings and Sasaki) for having urged Tahari to sell Theory at a price below its value to the Japanese in 2003, seeking damages and a share in the proceeds from the company's IPO in excess of $180 million. Rosen had also said that he would retire from the company within a year from the sale when, in fact, after Tahari's departure, he stayed on as the newly established company's president. Link Theory called Tahari's complaint "frivolous claims." Rosen labeled it "seller's remorse" and the case was later dismissed by a New York judge, even denying Tahari's claim for unpaid royalties by Theory's then Asian licensee, Link International.


References


External links

* {{DEFAULTSORT:Theory (Clothing Retailer) Fast Retailing Clothing brands of Japan Clothing retailers of Japan Clothing retailers of the United States Companies based in New York City