Vermont Flannel announced Tuesday that its ownership group, USA Brands, has acquired the assets of Vermont Teddy Bear.
The deal had been in the works for months, according to USA Brands president Matt Bigelow, and closed April 4. Vermont Teddy Bear’s ownership group simultaneously sold its apparel divisions — Pajamagram, Pajamajeans and the 1 for U — to an affiliate of New York City investment firm Lionel Capital.
“We’re really excited to have another company that supports domestic manufacturing,” said Bigelow, who declined to comment on the specific purchase price of Vermont Teddy Bear.
Ohio-based USA Brands — which also owns All-American Clothing and Diamond Gusset — now has 70 full-time employees in the state, between Vermont Flannel and Vermont Teddy Bear, Bigelow estimated.
“There are no planned layoffs,” he said, indicating that both Vermont entities would continue to operate as standalone brands.
One eventual departure, however, is former Vermont Teddy Bear CEO Bill Shouldice. He plans to stay on in an advisory role during the transition before leaving.
Shouldice said he did not want to speculate on the new owners’ plans but that he had no knowledge of employees losing jobs during the consolidation.
“On day one of the sale everyone is still employed, and we’re proceeding as if that is going to be the case,” he said.
Joe Van Deman, CEO of USA Brands, is now the primary decision-maker at Vermont Teddy Bear, according to Bigelow.
Lindsay Kurrle, commissioner of the state Agency of Commerce and Community Development, said at a Wednesday press conference that she spoke to Van Deman on the day the deal was closed.
“At this point there was no news of layoffs or plans to pull out of Vermont,” Kurrle said.
Vermont Teddy Bear operates its factory and flagship retail store in Shelburne and is one of the country’s biggest teddy bear manufacturers.
Vermont Flannel has six retail locations across Vermont — two of which operate as production facilities — and two retail stores in Maine. The company plans to open a ninth store this summer in Waterbury, according to a statement released by USA Brands.
Bigelow said there are plans for Vermont Flannel and Vermont Teddy Bear to partner on new products. The companies already launched a collaborative teddy bear wearing a Vermont Flannel button-down shirt last year.
