Underwear brand Parade sold; CEO Cami Téllez tells staff she’s being pushed out

• Gen Z underwear brand Parade has been sold to lingerie manufacturer Ariela & Associates International.
• Founder and CEO Cami Téllez told staffers via Slack that she’ll be forced to leave the company.
• Parade gained a cult following for its inclusivity and sustainability when it launched in 2019.

Parade, a Gen Z favorite underwear startup, agreed to be acquired by lingerie manufacturer Ariela & Associates International on Monday afternoon, according to Cami Téllez, the company’s cofounder and CEO.

According to an internal Slack message obtained by Insider, Téllez informed 48 members of her team via Slack three days earlier that Parade was in the “final hours” of closing a deal with AAI and that she would be forced to leave the company.

In 2019, Téllez dropped out of Columbia University to co-found Parade with Jack DeFuria. The company gained a cult following for its inclusivity and sustainability efforts and was valued at more than $200 million as of last year.

According to a separate Slack message obtained by Insider, Parade has been in discussions with AAI, which manufactures clothing for companies such as Fruit of the Loom, for at least a month. Parade employees were informed in the message that meetings with AAI associates would be scheduled on their calendars so that the team could better understand how their roles functioned.

Téllez told employees in Friday’s Slack that they should be receiving job offers from AAI “within the next 72 hours at the latest,” but that AAI has decided Téllez is “no longer a part of the deal” because they don’t believe she’s “essential to continuing the mission of Parade.”

“I am heartbroken to not be joining you guys in this next phase,” she wrote. It was my greatest wish to see this brand soar to new heights and to collaborate with all of you to continue to fearlessly lead the category.”

The CEO stated that she is “not making even a single dollar from the sale of Parade” and that she “pushed for this deal so that Parade would have a future and to protect all of you guys + ensure your positions.”

Téllez thanked her employees and reflected on her time building the direct-to-consumer company, which offered bright, playful styles in a variety of sizes made from eco-friendly materials. “This weekend marks five years since I first started working on this brand, and I know one thing for certain: the world is a better place with Parade in it,” she wrote. “And for one reason: the contribution you all made to writing a new underwear story.”

She offered to assist employees in their search for new opportunities. “No matter what happens with Parade under AAI, the incredible work that you guys have done has set fire to this industry,” she wrote.

Téllez declined to comment on the Slack messages when Insider first contacted her on Monday. Téllez confirmed the sale a few hours later, telling Insider in a statement, “The truth is this: I’m incredibly proud of what we built with Parade.” In just three and a half years, this incredible team generated over 125 million in revenue, acquired 750k devoted customers, and captured more than 1% of a highly competitive market. This is the first inning of my story; I turned 26 yesterday. “Watch this space.” Téllez declined to provide any additional information about the sale.

Ariela Esquenazi, CEO and President of AAI, said in a press release issued Tuesday morning, “We admire the extraordinary impact Parade has had in such a short time and are thrilled to bring a brand that shares our values of authenticity, inclusivity, and sustainability to the AAi portfolio.” AAI did not respond immediately to Insider’s request for comment.

Parade raised $13 million in venture capital in September 2022, with investors such as Stripes and Greycroft Partners on board. Parade signed a deal with Target in March to sell its products in nearly 400 of the retailer’s stores nationwide. During the pandemic, the company rose to prominence as online shopping increased and capitalized on social-media brand ambassadors who endorsed Parade products.