Gordon Brothers Buys Chinese Laundry Portfolio and Shifts to an Asset Light Model

Gordon Brothers has acquired the Chinese Laundry brand portfolio and structured a deal to sell roughly 1.5 million pairs of shoes as part of a wider wind down of the company’s physical operations. The transaction folds Chinese Laundry into Gordon Brothers’ growing stable of acquired fashion brands, while using an assignment for the benefit of creditors to clear inventory and close stores.

Brand Acquisition

Under the deal, Gordon Brothers has purchased the Chinese Laundry brand and related trademarks from CELS Brands, including sister labels Dirty Laundry, CL by Laundry, and 42 Gold. Founded in Los Angeles in 1971, the group grew from a small business into a multi label women’s footwear portfolio focused on trend driven, accessibly priced styles.

Chinese Laundry now joins a brand roster at Gordon Brothers that includes Nicole Miller, Rachel Zoe, Laura Ashley, and LK Bennett, with the firm positioning itself as a platform to relaunch and scale existing names through licensing and distribution partnerships.

Inventory Sale and Store Wind Down

Alongside the brand acquisition, Gordon Brothers has structured a capita led solution to monetize Chinese Laundry’s remaining footwear inventory and wind down its physical retail operations through an assignment for the benefit of creditors. The plan covers the sale of around 1.5 million pairs of shoes, framed by the firm as an opportunity for retailers to pick up in demand inventory to bolster assortments.

Greg Frattaroli, Senior Manager, North America Commercial & Industrial at Gordon Brothers, said that “We’re proud to provide a complete solution for the assets that supports the path forward for this well recognized brand, and excited to bring their merchandise to market…The sale of approximately 1.5 million pairs of shoes is an excellent opportunity for retailers to acquire in-demand products to enhance their store inventory.”

Physical locations are being closed as part of the process, with the focus shifting from operating stores to turning Chinese Laundry into an asset light brand business built on wholesale, licensing, and e commerce led distribution.

Growth Platform and Licensing

David Chin, Managing Director, Brands at Gordon Brothers, says that, “Chinese Laundry has been a fixture in the footwear industry for many years, and is beloved by consumers and distributors alike… We’re proud to build upon the legacy started by its founders and continue to grow the brand to bring the portfolio of footwear brands to a wider audience.”

That playbook mirrors how the firm has approached other acquisitions, where IP and brand awareness are treated as the primary assets, and partners handle product and channel execution.

Looking Ahead

For retailers, the immediate angle is access to a large volume of branded inventory, while the longer term signal is that Chinese Laundry is expected to re emerge as a license driven, multi channel brand rather than a traditional vertically integrated footwear company.