visionariesnetwork Team

02 May, 2025

brand management digital marketing and business

As a part of a strategic push to drive international growth, Xcel Brands has closed a $9 million equity investment with United Trademark Group (UTG), a Shanghai-based brand-building and licensing firm. The bold move is the latest push internationally by the New York-based company best known for building celebrities and influencers into scalable social commerce brands.

This transaction unites two social commerce, supply chain, and brand management leaders," said Robert W. D'Loren, Xcel Chairman and CEO. "We've been seeking an international partner, and UTG accomplishes that, particularly with their European, Middle Eastern, and Asian presence."

A Global Alliance of Strategic Scope

UTG, a $2 billion firm with strong distribution channels and a master license to distribute Jeep apparel in China, will provide Xcel with operating size and global logistics to grow. The investment also helps Xcel to refinance debt and build working capital.

George Liu, UTG co-founder, had also voiced tremendous resonance with the mission of Xcel: "We believe there is huge synergy here. Social commerce is huge in China, and we think Xcel's content model is the wave of the future. We also have great supply chain expertise, which we think will further enhance their operations."

Liu also indicated that UTG sees this as a long-term partnership: "This isn't a one-off deal. We're looking to potentially acquire and build brands up together."

Influencer-Led Brand Portfolio Grows

Xcel Brands is in the business of creating brands around family names. It owns or operates Halston, Judith Ripka, C. Wonder, and Tower Hill by Christie Brinkley. The company also has interests in Isaac Mizrahi and video commerce platform Orme Live. Xcel also owns the Longaberger home brand through Longaberger Licensing LLC.

Recent product launches demonstrate the firm's focus on accessing creator economies:

·         Cesar Millan's "Trust-Respect-Love" pet line, launching Spring 2026

·         A bakeware brand with chef Gemma Stafford, her debut product line, is also launching in Spring 2026

·         Food and cookware line by Latina influencer Jenny Martinez, debuting Fall 2025

D'Loren went on, "This week we hit 40 million followers across our portfolio of brands. We're targeting 100 million by the end of 2026."

Supply Chain, Tariffs, and Future Outlook

As it's a brand manager rather than a maker, Xcel Brands has overseas partners in Pakistan, China, and Turkey to manufacture. Although foreign tariffs might increase cost, D'Loren stated they're well-positioned: "We have sufficient inventory to weather short-term disruption, most notably in categories like jewellery."

Having visited China, D'Loren stated that diversified sourcing is practiced by QVC, an important sales partner. "Our risk is contained. We expect a great deal of global trade agreements to settle out over the next 90 to 120 days."

 Financial Update: Streamlining for Profitability

Xcel's most recent data reveal a patchy picture:

·         Revenue in the nine months through Sept. 30 fell 54% to $7.1 million, primarily due to the exit from the wholesale segment under its "Project Fundamentals" reset

·         Net loss was $15.3 million, up from $14.3 million in the prior period

·         Adjusted EBITDA loss decreased to $2.7 million from $4.6 million, demonstrating cost discipline improvement

These findings point towards a leaner but more strategically concentrated business model.

Vision for the Future

Alex Wang, chairman and cofounder of UTG, captured the enthusiasm for the alliance: "By merging our international experience with Xcel's social commerce capabilities, we're creating huge opportunities. We're going to create the next generation of great brands together." With UTG on board and new influencer-led products in the works, Xcel Brands seems to be on its way to becoming a top player in the international consumer market.