Canada Goose

[pasteurisation]

Quick everyone! Buy those CGs!

http://www.thestar.com/business/2013/12/10/canada_goose_sells_majority_stake_to_bain_capital.html

Hi, what does this mean? Sorry, I'm not sure what is really happening, Canada Goose will no longer be Canadian company?

 

[Royal42]

I need to replace my 5+ year North Face winter jacket. I'm looking for a CG Black Langford Parka in Medium but no such luck. I checked out the list of CG retailers on their site and it looks like no one has the exact one in stock. Anyone come across the jacket i'm looking for in stock anywhere?

Try and reason with this guy:

http://www.ebay.ca/itm/2014-BNWT-10...S_CSA_MC_Outerwear&hash=item43c082bec3&_uhb=1

 

[jediroger]

Yeah I saw his listings on eBay but wow the prices are crazy. I wonder what the declined offers look like. I think the seller just ordered a bunch of CG jackets hoping to cash in when people needed them for christmas presents.

 

[linds_15]



Hi, what does this mean? Sorry, I'm not sure what is really happening, Canada Goose will no longer be Canadian company?

bain capital bought a controlling share of the canada goose, we don't know how much. they say that for now nothing will change, and that they bought in to provide capital for international growth. we don't know anything for sure though, or how hands on they will be in the operations

 

[Find Finn]

The Canada Goose, I don't think you can buy a breed of animal.

It's their private equity branch, has INVESTED an amount of money in the company, for it to be able to grow, which normally means they are passive and get x amount of money for each $, they have invested. (normally 15-30%).

It's not uncommon for venture capital firms to buy high end brands and help them grow and then unhand them Fung Capital, Kering etc. etc. all own a lot of luxury brands.

 

[pasteurisation]

bain capital bought a controlling share of the canada goose, we don't know how much. they say that for now nothing will change, and that they bought in to provide capital for international growth. we don't know anything for sure though, or how hands on they will be in the operations

Good to know this. Thanks for your explanation. So Can I assume that Canada Goose could move all manufacturing process to Asia if Bain Capital decided to so in order to make bigger profit & to cut labour fee or etc?

 

[Find Finn]



Good to know this. Thanks for your explanation. So Can I assume that Canada Goose could move all manufacturing process to Asia if Bain Capital decided to so in order to make bigger profit & to cut labour fee or etc?

See my post just above.

 

[chinesealpha]

I doubt they'll move production overseas, at least for their down jackets. They've been manufacturing in Canada since the beginning. Secondary products like shells, softshells, and commemorative mugs perhaps...

 

[linds_15]



Good to know this. Thanks for your explanation. So Can I assume that Canada Goose could move all manufacturing process to Asia if Bain Capital decided to so in order to make bigger profit & to cut labour fee or etc?

nothing is forsure. they have an manufacturing setup in canada already, if they blow up internationally, and need more manufacturing, china may come into play. i could see them doing some lines or products there, but keeping their flagship pieces at the canadian factory, as a "heritage" or "classic" collection or something.

 

[Find Finn]



if they blow up internationally, and need more manufacturing, china may come into play.

That was 5-10 years ago.

 

[tedbearz]

They already manufacture gloves in China

 

[pasteurisation]

The Canada Goose, I don't think you can buy a breed of animal.

It's their private equity branch, has INVESTED an amount of money in the company, for it to be able to grow, which normally means they are passive and get x amount of money for each $, they have invested. (normally 15-30%).

It's not uncommon for venture capital firms to buy high end brands and help them grow and then unhand them Fung Capital, Kering etc. etc. all own a lot of luxury brands.

OK, it is an investment. My question now is; why does Bain Capital invest in Canada Goose & why does Canada Goose need to be invested?
I'm imagining something like stock though. Can you explain me a little more? Sorry for my ignorance.

 

[thekunk07]

you should be lol

 

[Wo Cao]

OK, it is an investment. My question now is; why does Bain Capital invest in Canada Goose & why does Canada Goose need to be invested?
I'm imagining something like stock though. Can you explain me a little more? Sorry for my ignorance.

There are a number of reasons why Bain Capital would have invested in Canada Goose. Their balance sheets could have been bad, their market share could be in jeopardy, or they could simply be looking to expand and become a larger company. Venture capital firms have a bad reputation for no reason. Most of the time, they try to revitalize the companies they invest in so that they can make more money.

I do not think it's wise to assume that just because a venture capital firm invests in a company that said company will move its production overseas. It's certainly possible, but Canada Goose is a luxury brand with a very particular customer base.

 

[Wo Cao]

That was 5-10 years ago.

Especially with their crazy rising labor costs.