PHOENIX, AZ--(Marketwired - Aug 29, 2017) - Canal Partners, an early stage venture capital firm based in Scottsdale, Ariz., has sold its interest in the premium headwear retailer Hat Club after successfully guiding the company to record growth. The firm reports nearly a 20 percent Internal Rate of Return (IRR) on the investment.
Canal Partners invested in Hat Club in 2014 to help them build out their e-commerce platform and bridge the gap between brick-and-mortar retail and online sales. Along with the financial backing, the VC firm also aligned the retailer with a new CFO, Robert Lunny, who dramatically increased the company's profit margin. Hat Club, which was originally founded in 1992 by former Phoenix Suns player Danny Ainge, is now the second largest retailer of branded and licensed headwear with 26 stores around the country.
"We recognized Hat Club had tremendous potential as the second largest player in the space with the leadership of the Stachels, they just needed an injection of capital and coaching to take the business to the next level," said Todd Belfer, managing partner at Canal Partners. "They already had something their customers loved, and now they have more channels to deliver the experience."
As they do with each of their portfolio clients, Canal Partners became a true partner in Hat Club, providing guidance on business strategy, operations and growth. The firm prides itself on providing more than just an infusion of money; they invest in companies in which they know that can make a difference that will equate to growth and prosperity for all involved.
"Our mission has always been to provide our customers with a fun way to express their individuality and style," said Paul Stachel, CEO of Hat Club. "With Canal Partners' support and strategic guidance, we've been able to fulfill upon that mission and rise to one of the top retailers of premium headwear."
To date, Canal Partners has enabled more than a dozen companies to achieve significant market share in their respective industries and developed them into thriving organizations. As they continually look to expand their portfolio, they focus on growth-stage companies with proven, scalable business models and have a track record of significant success with internet technology and SaaS companies.
About Hat Club
Originating in Phoenix, Arizona as the world's first all-hat store, Hat Club has grown to become known as one of the top purveyors of premium headwear over the last 20 years. Hat Club carries all the latest hats from the top contemporary fashion lifestyle brands and licensed sports headwear catering to a loyal customer base and everyone else alike; providing them a way to express their individuality through hats and lifestyle. Each Hat Club store is unique in that the product selection is tailored to the regions they're based in. www.hatclub.com
About Canal Partners
Canal Partners is a venture capital firm that provides professional investor services and capital to B2B software and internet technology companies that have market-proven products and services. Canal Partners creates, and increases value for, highly scalable, revenue-generating, growth-oriented companies in a variety of internet and software-as-a-service businesses. Canal Partners serves the Phoenix, Atlanta, and San Diego markets and works with select portfolio companies, actively participating in board, advisory, strategic, and support roles to increase scalability, financial stability, and shareholder value. Learn more at www.canalpartners.com.
Contact Information:
Contact:
Beth Cochran
602-758-0750
Deb Caron
480-628-0270