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Allen-Edmonds Sold to Private Firm - Page 2

post #16 of 46
Quote:
Originally Posted by Panerai118
Wow, you guys don't sound very optimistic about Goldner Hawn Johnson & Morrison Inc. taking over. I am not familiar with them...Is this company known to dilute brands it acquires?

I own several pairs of Allen Edmunds, and now I am thinking about stocking up!

I don't know much about these guys specifically, other than they look like a middle market LBO shop. They are probably looking at holding AE for 3-5 years and then flipping it public, or to the next buyer, at what they hope is a substantial profit. If it's not already, AE will quickly become a very bottom line oriented business, as I suspect they will have a boatload of debt to service....
post #17 of 46
Jan Libourel must be crying himself to sleep tonight.
post #18 of 46
Quote:
Originally Posted by Vintage Gent
Jan Libourel must be crying himself to sleep tonight.

His quote from the AAAC thread:

"In a worst-case scenario, I can take solace in the fact that I have acquired a sufficiency of A-E shoes to keep me well shod for the balance of my days."
post #19 of 46
Quote:
Originally Posted by EL72
Good thing they explained what cedar shoe trees are. I thought they were where the trees on which shoes grow.

only cedar shoes grow on trees.
post #20 of 46
Quote:
Originally Posted by AAA
I don't know much about these guys specifically, other than they look like a middle market LBO shop. They are probably looking at holding AE for 3-5 years and then flipping it public, or to the next buyer, at what they hope is a substantial profit. If it's not already, AE will quickly become a very bottom line oriented business, as I suspect they will have a boatload of debt to service....

just finished going though their website. seems to have a very small but diverse portfolio, this company. with regards to ae, i think its really too tough to call what will happen in the next few years except in all probability they will have a more aggressive marketing campaign.
post #21 of 46
Thanks, acidicboy. I'm holding out hope that this will ultimately be a good thing...though I'm not wagering anything on it.
post #22 of 46
Quote:
Originally Posted by acidicboy
just finished going though their website. seems to have a very small but diverse portfolio, this company. with regards to ae, i think its really too tough to call what will happen in the next few years except in all probability they will have a more aggressive marketing campaign.

Well, if it were run by one of our members, it would seek to expand its higher end offerings, with a glitzy marketing campaign to boot, pun sort of intended, and in all likelihood do quite well.
post #23 of 46
I was thinking of applying there for an intern position this fall, seeing as it's 20 mins from where I live...damn.
post #24 of 46
Quote:
Originally Posted by Teacher
Thanks, acidicboy. I'm holding out hope that this will ultimately be a good thing...though I'm not wagering anything on it.

one more thing we should take note is they didnt buy it from the original owners.
post #25 of 46
Quote:
Originally Posted by Vintage Gent
Jan Libourel must be crying himself to sleep tonight.

Nope. I've got three more pairs I'm getting at the Cabazon outlet sometime next month. That'll bring my total A-E wardrobe to 33 pairs, which is more than enough to meet the needs of any sane or (in my case, given the number of shoes I've bought) not so sane man. Moreover, for the past 18 months everything A-E has brought out has been on lasts that are ill-suited to my feet, so I'm not even waiting for A-E to put any on closeout. Thus the trail was going to fork between A-E and myself (for quite a while, anyway) even if John Stollenwerk had retained ownership.

I am looking forward to spending the money I've been dropping on A-E's for the past three years on tailored clothing from W.W. Chan, something I am sure you will approve of, Vintage Gent.

Actually, as I mentioned in a post on the Andy forum, part of the reason for my frenetic accumulation of A-E shoes has been in anticipation that the great days of bargain, high-quality A-Es might come to an end sometime, which may or may not happen under the new ownership.
post #26 of 46
How much do you think a business like AE is worth? For all the name recognition, it's sometimes disheartening to learn how little these manufacturing comapnies are actually worth.
post #27 of 46
Quote:
Originally Posted by JLibourel
I am looking forward to spending the money I've been dropping on A-E's for the past three years on tailored clothing from W.W. Chan, something I am sure you will approve of, Vintage Gent.

Indeed I do. Glad to know also that you've stockpiled enough A-E's for just such an emergency.
post #28 of 46
Quote:
Originally Posted by Associate
How much do you think a business like AE is worth? For all the name recognition, it's sometimes disheartening to learn how little these manufacturing comapnies are actually worth.


http://www2.jsonline.com/story/index.aspx?id=474651

The PE firm paid $100 million, basically 1X sales.
post #29 of 46
Quote:
Originally Posted by EL72
http://www2.jsonline.com/story/index.aspx?id=474651

The PE firm paid $100 million, basically 1X sales.

I wonder where they can take this brand from here. AE seems to be stuck in a not-so-sweet-spot where they make a quality product, have an expensive manufacturing structure, yet can't break the $300 barrier per pair.

Here in NY I see decidedly mid-range Italian shoes like Peluso, etc. go in the $400-500 range. nevermind stuff like Prada or Gucci that is nowhere near in quality. Or take Alden, which is AE's archrival, yet has better brand cache and can command higher prices.
post #30 of 46
The linked article (thanks EL72) gives a comforting spin on their plans, and a picture of how slowly the firm is growing currently:
Quote:
Sweeney said the offer from Goldner Hawn began when he met Stollenwerk and Sommerhauser at an Italian restaurant in downtown Milwaukee several months ago. "We had a dinner and got together and hit it off right away," Sweeney said. Stollenwerk said Goldner Hawn's bid wasn't the highest, but the best based on "their interest in the company, their understanding of the consumer goods business, the personalities of the people." "They seemed to have the Warren Buffett philosophy of acquisition, and that's to find a good company . . . with good management (and) a strong balance sheet, and let them grow," Stollenwerk said. Neither he nor Sweeney would disclose Allen-Edmonds' earnings, but Sweeney called them "significant." Stollenwerk said the company has made money every year since his purchase in 1980. Sales have been rising about 5% annually in recent years, Sweeney said. To grow further, he said, Allen-Edmonds will work with its largest and most important customer, upscale retailer Nordstrom Inc.; "invite" new retailers occasionally; and open new Allen-Edmonds stores. The firm now has 13 retail stores and another 13 outlets that don't carry the full line, he said.
Not exactly the slash-and-burn that was feared, but I do think that quality will likely get cut eventually - at the very least, a lower-priced line is likely (even Alden has one of those, with the Cape Cod collection and flexwelts)
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