We have been busy on LinkedIn this month. Just when many companies thought they had bounced back from the impact of Covid-19, it seems retail and consumer goods operators are being hit hard yet again, with downturns in consumer spending and increasing costs.
Current news that warranted some ‘IP chatter’:
- In March 2025, Fast-fashion retailer Forever 21 filed for bankruptcy[1], citing increasing pressure from Shein & Temu who snatched their target customer.
- In March 2025, Boohoo announced it was renaming itself to Debenhams[2] to appeal to an older demographic/customer base, citing a loss of GenZ customers from pressure from Shein & Temu.
- In March 2025, ASOS announced the relaunch of UK iconic fashion brand TopShop[3], after years away from the high street.
- In January 2025, Gordon Brothers sold Laura Ashley[4], which it bought from financial distress and developed a successful licensing model and global ecommerce business
Industry commentary that caught our attention and on which we commented and responded:
- Our review of The State of Fashion 2025, an industry report published jointly by Business of Fashion and McKinsey, which explored key industry trends and outlook and the key priorities for Retail CEOs for 2025.
- Article by Lisa Rafter in ABF Journal about increasing gap in LTVs that companies and lenders are facing with AR and inventory values being down.
- Article by Alix Partners exploring the importance of customer data and insights, and how this can support brand positioning when launching private brands.
We posted and commented on two central themes that, in our opinion, are highly relevant to both companies and lenders:
- Brand loyalty, driven by customer data and analytics, can help preserve brand value to give retailers and lenders some options even when stores shut their doors (physical or virtual).
- ABL lenders facing deteriorating value of collateral and a growing LTV gap can use IP collateral to bridge the gap and provide much needed financial support for struggling retailers.
Key takeaways from our reviews, posts and comments
Valuable customer data and analytics can:
- shed light on how customers respond to promotional campaigns and direct marketing, providing IP buyers with insight into brand loyalty and the customers that generate recurring revenue and predictable cash flows.
- allow retailers to position and launch private label brands to their existing and loyal customer base; they already know consumer shopping habits and preferences.
- allow retailers to relaunch brands that have been missing from the high street for years and reconnect with a loyal customer base.
- be a valuable and critical element of any brand-related portfolio that is sold from distress and can increase recovery value in downside scenarios.
Lenders to Retail and Consumer Goods companies can:
- take comfort that there are viable monetization options in retail in a downside scenario.
- gain confidence around IP value by instructing an independent IP Valuation that delivers commercially sound and, most-importantly, benchmarked IP asset downside valuations.
- confidently bridge the impending LTV gap, provided adequate IP due diligence is conducted around ownership, transferability and other key factors that preserve value in a downside scenario.
Click here to see global brands we have valued and some of the lenders and investors we have worked with. Metis Partners has extensive experience in the valuation of IP and has been selling IP assets from distress scenarios for more than two decades. This trusted reputation is the reason our intellectual property valuation services have been relied on in more than 2,000 IP transactions.
