Briefing: September 23, 2022
Walmart has one less lawsuit on its plate as of this week, with Crocs alerting the U.S. District Court for the District of Colorado that it has reached a settlement with Walmart in the trademark case that it waged against the retail giant and more than a dozen others in July 2021. The settlement comes after Crocs reached agreements with a number of the other defendants, including Loeffler Randall and Shoe-Nami, Inc. Meanwhile, Crocs’ proceeding before the International Trade Commission – which it initiated in June 2021, claiming that two dozen companies (from Skechers to Loeffler Randall) are engaging in the unlawful importation and sale of “certain footwear products and packaging that violate [its] registered trademarks,” including its “CROCS” word mark, as well as the 3-D design of its famous footwear – is still underway.
In other trademark developments, an SDNY magistrate judge has submitted a report & recommendation to Judge Rakoff regarding adidas’ motion to dismiss Thom Browne’s counterclaim and affirmative defenses, stating that Thom Browne’s counterclaim – which is aimed at getting one of adidas’ 3-stripe trademark registrations canceled – should be dismissed with prejudice and two of its affirmative defenses should be stricken. More to come on this soon.
On the web3 front, KNXT – a Kering-owned innovation project that TFL exclusively reported on in July – has shed some light on what is to come, saying on Twitter on Friday that it is “a luxury wholesaler, an online shop powered by Web3 technologies, that sells high-end products from prestigious Luxury Houses.”
In this week’s deal-making news: Cash continues to flow into the resale market, with sneaker and streetwear reseller Impossible Kicks announcing the close of a $3 million Series-A equity raise on September 20, bringing its total funding raised to $7 million since its founding in February 2021. The Irvine, CA-based company says that it expects $55 million-plus in sales in 2022, up from $15 million in sales in 2021.
– Funding also continues to go to sustainability-focused retailers, with Everlane securing $90 million in debt financing, including a $65 million revolving credit facility and a $25 million first-in last-out term loan.