buyout

J. Crew Agrees to $3 Billion Takeover

Filed under: Apparel

Purveyor of preppy style J. Crew has agreed to a $3 billion takeover by two private equity firms. TPG Capital and Los Angeles-based Leonard Green & Partners say they plan to work with J. Crew Chief Executive Mickey Drexler, who will remain in that role and maintain a "significant equity investment" in the New York-based company, the Wall St. Journal reports. Drexler, the former head of The Gap, has doubled sales to more than $1.5 billion during his tenure and will personally pocket $150 million from the deal, the San Francisco Chronicle notes. The offer of $43.50 a share in cash represents a 16% premium over J. Crew stock's closing price of $37.65 on Monday and will require shareholder approval. Despite having gotten a boost courtesy of big fan Michele Obama, who wore their designs at numerous public appearances, the company's fortunes have oscillated with the economy. In May 2009 my colleague Deirdre Woollard reported that J. Crew eliminated a number of jobs in an effort to reduce its annual budget by $40 million.

Tags: apparel, business, buyout, J. Crew, Michele Obama, Mickey Drexler, private equity

Consolidation Causing Clothing Industry Problems

by Trey Evans (RSS feed) —

Filed under: Apparel

We all know that the May Company was bought by Federated, so all Foley's, Famous-Barr, and Marshall Field's are turning into Macy's. Or something. It's hard to follow. But what all this merging means for the fashion industry is less outlets for designers to peddle their wares. If Marshall Field's was the only person in town that carried Jhane Barnes, and now that store is a Macy's ... where can you go

to buy a Barnes shirt? You can see the problem the fashion industry is facing in a period of mergers and acquisitions both in retailers like the May/Federated thing and conglomerates that are buying up brands left and right (LVMH I'm looking at you). Larger brands like Polo Ralph Lauren will be just fine. They own their own stores and have lines that span from reasonable (Chaps RL, Polo Jeans Co.) to ultra luxe (Purple and Black labels). The smaller and store (obviously) brands are going to be the ones that suffer in these situations - names like Evan-Picone and Sag Harbor. Where will all of this take the fashion industry ... to something like Taco Bell in Demolition Man or will it just weed out the weaker brands that were destined to fail anyways? Only time will tell.

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Tags: buyout, fashion, merger

Tides' Million Dollar Buyout Promotion

by Nicole Weston (RSS feed) —

Filed under: Luxury Travel & Hotels

The Tides South Beach has just launched a promotion that amounts to the ultimate hotel stay: for $1.2 million, their Million Dollar Buyout package allows someone to rent out the entire luxury boutique hotel for an amazing three days and two nights. The 45-room hotel will become a virtual playground, complete with luxury suites and expansive views. The package includes an opening ceremony, a $1,000 amenity in each guest room, a dinner for 90 at the Versace Mansion, a golf outing for men and a shopping day for women. All of the hotels regular services will be available, as well as a private butler for each guest room, unlimited room service and 5 limousines on call 24-hours a day. Should boredom be a problem, the hotel also arranges a private pool party with professional salsa dancers and a pajama brunch party. For an additional $450,000, the hotel will also arrange first class flights for all guests into Miami International.