A group of investors including fashion designer Tommy Hilfiger and music executive Tommy Mottola has bought $10 million in stock in Evine Live Inc.
Hilfiger and Mottola are now advisers to the Eden Prairie-based home shopping network. The group also includes Morris Goldfarb, CEO of G-III, which has licenses with labels such as Calvin Klein and Ivanka Trump.
“Given what I see happening in today’s changing retail landscape, as well as the interactive video commerce world and social media explosion, I believe Evine has the competencies to become the bridge between bricks and mortar and e-commerce for today’s consumer,” Hilfiger said in a statement. “I look forward to bringing vision and relationships in the celebrity world to this team to help transform its growth path.”
The group bought common stock at $1.68 a share, a 10 percent discount over the previous 15-day average for the stock.
“It is exciting to have these leading industry icons and executives invest in our company as we seek to build transformative alliances in this ever evolving video commerce marketplace,” said Evine CEO Bob Rosenblatt in a statement. “This investment will help us accelerate our brand-building opportunities as well as strengthen our balance sheet. I couldn’t be more excited about working with Tommy Hilfiger again and with media/entertainment mogul Tommy Mottola.”
Mottola, who is credited with the rise of Mariah Carey, Bruce Springsteen and Billy Joel, said live video commerce helps tell a brand’s story.
The investment group has a six-month option to make additional equity buys in Evine at a price equal to the five-day average price before the stock purchase. The total number of shares will not exceed 19.99 percent under the agreement.
Evine shares closed Thursday at $2.10, up 17 cents.