JustFab co-CEO Adam Goldenberg said in a statement the two brands
will remain distinct but join forces to broaden their collective customer reach in the U.S. “[We will] continue to take substantial market share from traditional footwear brands, retail players and e-commerce competitors,” he added.
Co-CEO Don Ressler noted that the firms have a combined 33 million members and expect to garner $400 million in total sales next year.
JustFab has been on the expansion fast track as of late, raising $76 million in venture funding in 2012 and acquiring children’s apparel site Fabkids.com in January. Meanwhile, Shoe Dazzle hit the 10 million-member mark just before it nixed its customer membership requirement last year.
“Both of our brands have seen high growth and success over the last three-and-a-half years, and with the synergies between our complementary businesses, it made sense for us to combine our strengths,” Shoe Dazzle CEO Brian Lee said in a statement. “This merger gives us the scale to create a truly global, multibrand lifestyle fashion company.”
As part of the merger, Ressler and Goldenberg will maintain their roles at the 3-year-old JustFab, while Lee will join JustFab’s board of directors. Shoe Dazzle’s president and co-founder, M.J. Eng, will remain in his position at the 4-year-old company.
The firms plan to relocate to a shared headquarters in El Segundo, Calif., early next year.