Authentic Brands Group, a retail conglomerate plans to shed a planned initial public offeringInstead, sell large equity stakes in the business to a private equity firm CVC CapitalHedge fund HPS Investment PartnersCNBC has learned that there are a variety of stakeholder groups.

The company stated that the deal was valued at approximately $12.7 million and would be made public Monday.

Authentic Brands has several portfolio companies, including Aeropostale and Forever 21 clothing retailers, Barneys New York departmental store chain Barneys New York men’s suit manufacturer Brooks Brothers, Sports Illustrated magazine, and Aeropostale apparel retailer. The company will purchase Reebok, a sneaker-maker, in the first quarter of 2019. expected to closeAddition of another brand to their holdings.

This company was filed for an IPO in early July. Jamie Salter, Chief Executive of Authentic Brands, stated that the company will aim for an IPO in 2023 to 2024. He stated that he was resigning as CEO to continue his five-year tenure.

Salter said in a telephone interview that “the IPO climate was ridiculous.” Salter said, “I believe we would have received a huge valuation…maybe even more than the price we sold our business for.” What do you know? But guess what? I would rather remain private.”

Recent months have seen a flurry of new retail businesses enter the public marketplace, starting with eyeglass maker Warby ParkerPlatform for fashion rentals Rent the RunwayEco-friendly shoes brand AllbirdsFashion site with e-commerce Lulu’s. Names that are well-known on the Internet have been favored by investors. to fetch valuations as if they were high-growth tech companies.

CNBC had reportedAuthentic Brands sought a value of around $10 billion for its public debut.

CVC, HPS and HPS will close in December. Both the PE firm as well as the hedge fund will keep a seat on Authentic Brands’ Board of Directors.

Chis Baldwin is a CVC managing partner. He stated, “We intend to work closely avec the ABG team in order to execute on their strategic priorities, especially around global expansion.”

BlackRock, the largest shareholder of Authentic Brands since 2019, will continue to hold that position. The existing investors, including the U.S. Mall owner Simon Property Group, General Atlantic, Leonard Green & Partners, BrookfieldShaquille, a basketball player, will retain their equity positions.

Authentic Brands, which filed to be listed, reported that it had a net income of $211million in 2020, an increase of $72.5 million from a year before, and its revenue rose by nearly 2% to $489million.

Salter said, “We have today the same playbook that we had yesterday.” Salter said, “You will hear more acquisitions by year’s end.”

Recently, CVC struck a deal to buy Unilever’s tea business. Other portfolio businesses include A Bathing Ape streetwear brand and Pet Goods Chain PetcoAccording to the website, it is. HPS emerged from J.P. Morgan Asset Management’s 2016 spinoff.