Global asset management and investment firm, Gordon Brothers has finalized the acquisition of the Chinese Laundry brand portfolio from CELS Brands. Announced in February 2026, the transaction includes the namesake label along with sister brands Dirty Laundry, CL by Laundry, and 42 Gold. This move transitions the Los Angeles-based footwear staple from a traditional retail operation into a brand-licensing and distribution platform.

Inventory liquidation and operational restructuring

As part of a comprehensive capital solution, Gordon Brothers is overseeing the orderly wind-down of Chinese Laundry’s physical retail presence. The firm is currently managing the disposition of approximately 1.5 million pairs of shoes, offering a significant bulk-inventory opportunity for third-party retailers. This tactical liquidation facilitates a clean exit from brick-and-mortar liabilities, allowing the brand to refocus on high-margin digital and wholesale channels.

Market positioning and future growth

The acquisition comes at a time when the footwear sector is seeing a 11 per cent decrease in average retail prices, as consumers increasingly prioritize the sub-$500 ‘accessible luxury’ segment. By integrating Chinese Laundry into a stable that includes Nicole Miller and Laura Ashley, Gordon Brothers intends to leverage its global licensing infrastructure. David Chin, Managing Director of Brands, noted, the firm will prioritize expanded distribution through new licensees to scale the brand's reach without the overhead of owned storefronts

Founded in 1971, Chinese Laundry evolved from a retail fixture business into a dominant force in women’s contemporary footwear. The brand currently operates across four distinct price tiers, catering to diverse demographics from Gen Z ‘fast fashion’ to premium leather goods. Following its 2026 acquisition, the company is projected to operate as an asset-light entity, focusing on e-commerce and wholesale partnerships to maintain its global footprint.