Downtown’s Guess Inc. has taken its hat out of the public ring, the latest in a wave of L.A. companies fleeing volatile markets to focus on long-term strategy and growth.

The apparel and accessory retailer announced Jan. 23 the official closure of its sale to global brand development and licensing platform Authentic Brands Group – which acquired 51% of its intellectual property. Existing Guess shareholders and management, including co-founders Maurice and Paul Marciano, will continue to operate the brand’s business. 

Guess agreed in August to Authentic’s take-private offer that valued the retailer at $1.4 billion and would grant shareholders $16.75 per share in cash. As the transaction closed last month, the company de-listed after nearly 30 years of public trading under the GES marker with an ending share price of $16.81.

Authentic won out over brand management firm WHP Global, which offered to take Guess private at $13 a share last March.

The retailer joins a cohort of L.A. companies that have recently gone private in what Lloyd Greif, chief executive of downtown investment banking firm Greif & Co., considers to be a trend – and not just a blip – driven by tariff pressures and “stagflation.”

In the prior week, automotive entrepreneur Scott Painter tucked the Santa Monica-based car shopping platform he co-founded, TrueCar Inc., back under his wing in a $227 million deal with parent company Fair Holdings Inc.

Deal to facilitate growth

The transition will allow Guess more flexibility and resources for future growth, the brand’s chief executive Carlos Alberini said in a statement. The company brought in $3 billion in revenue in the fiscal year ending Feb. 1, 2025, a year-over-year increase of nearly 8%.

“We see significant potential to enhance the customer experience, strengthen our brand partnerships and elevate our industry leadership in this new chapter as a private company,” Alberini said.

Authentic President Matt Maddox said the company will contribute to the Guess brand a scaled platform to support category and geographic expansion, as well as “immersive live experiences” for consumers.

Founded in 1981 as a book of styles, Guess evolved into a lifestyle brand specializing in denim. It grew its footprint over the next few decades, scoring cultural relevance by outfitting protagonist Marty McFly in Robert Zemeckis’ classic “Back to the Future” and bringing on the likes of supermodel Claudia Schiffer and Jennifer Lopez to front the brand. 

Portfolio-leading brand

As of Nov. 1, Guess directly operated 1,058 retail locations worldwide, including four in L.A. The company’s $6 billion in global retail-equivalent sales bring Authentic’s annual retail sales to $38 billion globally. 

Joining a portfolio that includes Juicy Couture, ROXY, Lucky Brand, Forever 21 and Brooks Brothers, Guess is now Authentic’s second-largest brand under management following sporting goods retailer Reebok.

In a statement announcing the acquisition, Authentic’s Chief Executive Jamie Salter lauded Guess’ “legacy” and “perseverance.”

“What makes Guess compelling is the strength of the foundation already in place, from its exceptional leadership and iconic heritage to its vast network of licensing partners around the world,” Salter said. “Guess is one of the rare global brands that has built extraordinary awareness and continued to evolve while staying true to its DNA.”

The Marciano brothers decided to take Guess public in 1996 to raise funds, selling 7 million shares at $18 a piece. The venture got off to a shaky start, the company’s public image tainted by accusations of sweatshop conditions at its manufacturing facilities. Brighter times came in the early 2000s, with shares peaking in the fall of 2007 at $53. 

But years of economic uncertainty, slim margins and competition for capricious consumer dollars caught up to Guess’ stock performance in 2024, when shares tumbled 40% to a year-end close of $14.