Digital Brands Group secures binding 165 million dollar US apparel programme

US apparel and e-commerce company Digital Brands Group (DBG) says it has secured a binding two-year US programme worth 165 million dollars, covering apparel, footwear and toiletries for 771,481 people re-entering the workforce.

The company said the programme has already secured 3.3 million dollars in guaranteed cash flow between September 1 and December 31, 2026, from its first two markets. DBG forecasts a cash-flow margin of 15 to 18 percent and estimates the programme will involve around 23.9 million units.

The supply package includes basic apparel such as T-shirts, long-sleeve shirts, sweatshirts, joggers, underwear and socks, alongside footwear, outerwear, bags and hygiene products.

DBG issued the update partly in response to investor questions and online speculation surrounding the programme. The company stated that the contract had previously been disclosed through regulatory filings in July and September.

The development comes as DBG also considers a potential go-private transaction. An existing shareholder has proposed acquiring all outstanding shares for 77.58 dollars per share in cash, representing a 258 percent premium to the 21.63 dollar trading price before the proposal was announced in August.

The board, advised by Roth Capital Partners, is using a 60-day “go-shop” period to evaluate the offer and potential competing proposals, with the process due to conclude on October 5.

DBG, which operates lifestyle and luxury brands including Stateside, Sundry, Bailey 44, DSTLD and AVO Studio, previously said the US programme had expanded by 32 percent to 165 million dollars, adding new apparel and footwear categories and 40 million dollars in incremental revenue.