Fashioning the Deal
Fashion labels from Tommy Hilfiger to Valentino have been scooped up by private equity shops. We look at how seven deals have fared.
Matthew Williamson
Investors: TSM Capital and Aronsson Group
Investment: $4 million for a 22 percent stake, in August 2007
2008 sales: About $20 million
Postscript: Sales have been flat since the 2007 purchase. Williamson is launching its first complete accessories collection this spring.
Peter Som
Investor: NRDC Equity Partners
Investment: $10 million for two-thirds of the company, in September 2007
2008 sales: About $5 million
Postscript: Sales have declined since 2007, and market sources are buzzing that NRDC wants to put Som back on the block.
Betsey Johnson
Investor: Castanea Partners
Investment: $50 million for a controlling majority, in August 2007
2008 sales: About $100 million
Postscript: The company expanded its licensing deals with an outerwear line and says it will double its stores to 112 in the next five years.
Tommy Hilfiger
Investor: Apax Partners
Investment: $1.6 billion for 100 percent, in May 2006
2008 sales: About $2 billion
Postscript: Hilfiger abandoned the $4 billion I.P.O. it had planned last January, but sales have risen consistently since the deal. As of October, they were up 30 percent for 2008.
Halston
Investors: Hilco Consumer Capital and the Weinstein Co.
Investment: About $65 million (including $25 million for rights) for 100 percent, in March 2007
2008 sales: Less than $5 million
Postscript: The brand’s sixth incarnation launched in 90 stores, only 30 percent of which are in the U.S.
Zac Posen
Investor: Yucaipa
Investment: $100 million for 50 percent, in 2003
2008 sales: About $15 million
Postscript: Since Ron Burkle bought in, Posen’s sales have topped $10 million, and he’s licensed his name to watches and fragrances.
Valentino Fashion Group
Investor: Permira
Investment: $3.6 billion for 100 percent, from May to September 2007
2008 sales: About $2.6 billion
Postscript: Founder and designer Valentino Garavani retired days after the deal closed; his successor was fired after two collections.
