The ‘internet’s favorite underwear’ brand, Parade, is sold

All right, everyone, the time has come: Gen Z underwear brand Parade has agreed to be sold. The buyer? Ariela & Associates International, an intimates manufacturer and licensee of Fruit of the Loom, CNBC reported.

Though the purchase price remains undisclosed, the brand was reportedly worth $200 million in August 2022.

While on the surface, Ariela & Associates has a lot to gain from the new acquisition, including Parade’s “internet’s favorite underwear brand” status, its young, enthusiastic customer base, and its digital presence, Parade may also benefit from a larger infrastructure and increased ability to scale.

“Parade’s commitment to inclusive fast fashion which doesn’t compromise on its sustainable mission aligns seamlessly with our core principles and we believe that this union will allow us to create powerful synergies,” Ariela Esquenazi, CEO of Ariela & Associates, shared in a statement.

Let’s go back: Founded in 2019, Parade differentiated itself from its competition by championing inclusivity, body positivity, and sustainability alongside an affordable price point.

Its collaborations with influencers and other brands popular among Gen Z further contributed to its success. For instance, in July 2022, the retailer announced a collaboration with Urban Outfitters for its first physical retail partnership, and designed a capsule collection made from sustainable fabrics that was sold in 25 stores.

Earlier that year, the brand also introduced an underwear recycling program as part of its partnership with Terracycle—a sustainability initiative that also functioned as a loyalty play, in which Parade sought to attract repeat customers through incentives.

We’re keeping an eye on whether Parade shifts its retail strategy—and also on whether it holds on to its internet-famous status.