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The licensing company has settled and agreed to dismiss its case against Bolt, its e-commerce checkout service provider, the companies announced July 6.
As part of the agreement, ABG has become “shareholders” of the fintech startup, ABG founder and chief executive Jamie Salter said in a statement.
ABG, which owns brands including Barneys New York and Brooks Brothers, sued Bolt in April for breach of contract, claiming that the company failed to deliver its payment software as promised and then changed the terms of their equity deal, under which ABG would receive a 5 percent stake in Bolt if it were to hit sales targets.
Bolt, valued at $11 billion as of January 2022, faced scrutiny earlier this year after a New York Times investigation outlined that founder Ryan Breslow exaggerated his company’s tech capabilities and number of merchant partners in efforts to court investors.
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Brewlow stepped down as CEO of the company in January, and Amazon veteran Maju Kuruvilla was appointed to the role the following month.
As part of its settlement agreement with ABG, Bolt will continue to provide checkout services for ABG-owned Forever 21 and Lucky Brand, with the option to serve ABG’s wider portfolio down the road.
“ABG’s commitment to continuing its partnership with Bolt is a testament to their long-term vision of digital innovation and their ethos of identifying best-in-class partners,” Kuruvilla said in a statement.
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