American Eagle buys Tailgate Clothing

IOWA CITY - American Eagle Outfitters is making a bid to enter the collegiate apparel market by acquiring Iowa-based Tailgate Clothing.

American Eagle will pay $11 million in cash and stock for Tailgate Clothing. The company, which specializes in vintage-inspired collegiate sportswear, is based in Ankeny with a flagship store in downtown Iowa City.

Iowa native and fashion designer Todd Snyder launched Tailgate Clothing in 1997. Snyder also is known in the fashion industry for his Todd Snyder New York premium menswear line sold in stores such as Nordstrom.

'We are thrilled to add these unique brands to our portfolio, which provide exciting new business opportunities,” said Jay Schottenstein, American Eagle interim CEO in a news release. 'Capital investments in the Tailgate and Todd Snyder brands will be paced, with a test and scale approach based on profitability and return on investment.”

American Eagle plans to open as many as 200 Tailgate stores in college towns, according to a Tailgate Clothing news release. The stores also will carry other brands including PF Flyer shoes, Penfield outerwear, Swell water bottles and New Era hats.

'Joining a leading American retailer is an exciting step for our brands and provides a strong foundation for future growth,” Snyder said. 'Our new Tailgate store concept is an ideal outlet to integrate American Eagle jeans and apparel.”

In June 2010, Snyder partnered with Iowa entrepreneur and former Iowa Hawkeye and NFL player Nate Kaeding to open Tailgate Clothing's flagship store at 30 S. Clinton St.

'Our goal from the beginning was to create a store and brand that celebrates the essence and traditions of the Iowa Hawkeyes and the city of Iowa City,” Kaeding said in a news release from Tailgate.

Snyder, who lives in New York, will be an executive vice president of American Eagle and Jimmy Olsson, his longtime colleague, will be a vice president and continue to run the day-to-day operations of Tailgate and Todd Snyder New York.