Andie Acquires Richer Poorer

Andie is acquiring apparel label Richer Poorer, the brand announced on Tuesday. The terms of the deal were not disclosed.

For Melanie Travis, the founder of Andie, a digitally-native swimwear brand, the acquisition — Andie’s first — marks a major milestone in its trajectory. The 8-year-old label, which sells $112 to $142 one-piece swimsuits for all body types, is a profitable business that generates $50 million a year in sales, and she wanted to expand into everyday apparel next. Instead of developing its own line, Travis instead decided to buy a brand that already embodied the “coastal chic” aesthetic she was looking for.

When a banker in her network sent her a list of potential targets, it included apparel upstart Richer Poorer — whose cropped tees and nautical sweaters she already wore herself.

“I’ve always loved the brand and the product,” said Travis, Andie’s founder and chief executive. “I own many of the shirts.”

The acquisition is, in part, a turnaround play for 15-year-old Richer Poorer, which was co-founded in 2010 by Iva Pawling and Timothy Morse and sold to mall chain Francesca’s for an undisclosed sum in 2023. While the company has a loyal customer base, its sales growth stalled under its previous owner, Travis said.

To reboot sales, Andie will merge Richer Poorer into its e-commerce operations to help the company better use data to drive new customer acquisition and push sales past $10 million. The merger will also increase visibility for both brands; Andie will feature Richer Poorer’s relaxed tees and cotton button-ups on its site and sell its swimwear on Richer Poorer’s site. Travis anticipates the overall company could surpass $100 million in sales in the next three to five years.

Andie and Richer Poorer’s tie-up — where two similarly-sized companies combine forces — is becoming increasingly common among direct-to-consumer brands: 7-year-old Dame acquired fellow sexual wellness start-up Chakrubs in April and Billy Reid acquired 13-year-old made-to-measure label Knot Standard last year; while 13-year-old menswear brand Mizzen + Main is currently looking to buy another label.

In a market where profitable brands that generate less than $100 million in annual sales are forgoing outside investment at lower-than-desired valuations, linking up with companies that are either similarly positioned or have the potential for profitable growth with some operational assistance is often a more attractive option. Andie purchased Richer Poorer with cash from its balance sheet, and it plans to pursue similar partnerships down the line, Travis said.

“We’re buying growth, but we’re doing it in a way that’s really additive to Andie,” she added. “By rolling in other brands, you ultimately create a business profile that is much more interesting than on its own because size matters.”

But Travis isn’t ruling out selling a majority stake of Andie, with Richer Poorer in tow, to the right private equity firm or brand management company that could help fast-track the combined company past the nine-figure mark.

“You have to prove that you can execute, and if you can then get a war chest and just do it right, do it big, that’s the thing I’d be open to,” Travis said.