Fashion Week: Banking on Buys

Gilbert Harrison has a dozen big-name fashion shows on his hit list this week, including Vera Wang, Oscar de la Renta, and Tory Burch, but he won't be there to look at hemlines. The chairman of New York-based investment bank Financo, he specializes in retail and apparel deals--he paired Wang with budget priced chain Kohl's--and even in a tough economy, he's on the hunt. Under the tents he scopes out acquisition candidates or companies that need capital to grow.

This season, the credit crunch and the wave of retail bankruptcies are crimping smaller deals. But he says deals are still being done, with multiples approaching six to eight times earnings before interest, taxes, amortization and appreciation (EBITDA), as opposed to 10 to 14 times.

"Buyers are starting to realize they can do something at better prices, and sellers are willing to take it," he said.

His firm is currently an advisor to bankrupt retailer Linens n' Things. He says Financo has several serious bids for the chain, and hopes to clinch one by the end of this week.

by Catherine Curan

More on Fashion Week from Portfolio.com:

Cutting Corners
The Runway Race for Retail
Making Model Moms
Bleak Chic
How to Freak People Out at Fashion Week
Does Colette Bridge the Gap?
The Offstage Pass