Teen retailer American Eagle Outfitters is set to acquire New York-based menswear label, Todd Snyder, for $11 million in cash and stock, according to the New York Times. The buy positions American Eagle to move away from the “fast fashion” wars that have upended the teenage apparel market, and aiming to gain a foothold with an older age group. “It’s really our type of look, the American styling,” Jay Schottenstein, American Eagle’s chairman and interim chief executive, told the Times. “We’d been trying to compete by screaming with the loudest promotions from the windows, having among the lowest price points on fleece and T-shirts, and it wasn’t working” said Chad Kessler, a former Abercrombie & Fitch executive who was named the brand’s global president in March.
According to the New York Times: “American Eagle will look to expand Mr. Snyder’s eponymous line, starting with a flagship store in New York — the label’s first independent store, Mr. Kessler said. (A Todd Snyder coat can cost $1,000.) Still, it is Todd Snyder’s [lower cost] Tailgate collegiate line that American Eagle sees as the centerpiece of its acquisition.” American Eagle hopes to open as many as 200 Tailgate stores at universities nationwide, starting with Southeastern Conference and Big Ten colleges, and sell American Eagle jeans alongside Tailgate’s retro tees.