Allen-Edmonds Sold to Private Firm

Discussion in 'Classic Menswear' started by Stax, Jul 20, 2006.

  1. AAA

    AAA Senior member

    Messages:
    104
    Likes Received:
    0
    Joined:
    Dec 21, 2002
    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....
     
  2. Vintage Gent

    Vintage Gent Senior member

    Messages:
    2,748
    Likes Received:
    26
    Joined:
    Mar 12, 2003
    Location:
    The People's Republic of Galveston
    Jan Libourel must be crying himself to sleep tonight.
     
  3. EL72

    EL72 Senior member

    Messages:
    6,860
    Likes Received:
    3
    Joined:
    May 11, 2006
    Location:
    Toronto
    Jan Libourel must be crying himself to sleep tonight.

    [​IMG] 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."
     
  4. acidboy

    acidboy Senior member

    Messages:
    21,170
    Likes Received:
    1,740
    Joined:
    Mar 13, 2006
    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.
     
  5. acidboy

    acidboy Senior member

    Messages:
    21,170
    Likes Received:
    1,740
    Joined:
    Mar 13, 2006
    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.
     
  6. Teacher

    Teacher Senior member

    Messages:
    12,939
    Likes Received:
    459
    Joined:
    Apr 2, 2005
    Location:
    Grand Forks, ND, USA
    Thanks, acidicboy. I'm holding out hope that this will ultimately be a good thing...though I'm not wagering anything on it.
     
  7. Stu

    Stu Senior member

    Messages:
    2,351
    Likes Received:
    11
    Joined:
    Mar 12, 2002
    Location:
    Princeton
    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.
     
  8. VMan

    VMan Senior member

    Messages:
    5,103
    Likes Received:
    25
    Joined:
    Feb 26, 2003
    I was thinking of applying there for an intern position this fall, seeing as it's 20 mins from where I live...damn.
     
  9. acidboy

    acidboy Senior member

    Messages:
    21,170
    Likes Received:
    1,740
    Joined:
    Mar 13, 2006
    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.
     
  10. JLibourel

    JLibourel Senior member

    Messages:
    8,607
    Likes Received:
    397
    Joined:
    Aug 7, 2004
    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.
     
  11. Associate

    Associate Senior member

    Messages:
    108
    Likes Received:
    0
    Joined:
    Jan 18, 2005
    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.
     
  12. Vintage Gent

    Vintage Gent Senior member

    Messages:
    2,748
    Likes Received:
    26
    Joined:
    Mar 12, 2003
    Location:
    The People's Republic of Galveston
    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.
     
  13. EL72

    EL72 Senior member

    Messages:
    6,860
    Likes Received:
    3
    Joined:
    May 11, 2006
    Location:
    Toronto
    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.
     
  14. Associate

    Associate Senior member

    Messages:
    108
    Likes Received:
    0
    Joined:
    Jan 18, 2005
    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.
     
  15. Duveen

    Duveen Senior member

    Messages:
    840
    Likes Received:
    0
    Joined:
    Apr 25, 2004
    Location:
    NYC
    The linked article (thanks EL72) gives a comforting spin on their plans, and a picture of how slowly the firm is growing currently:
    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)
     

Share This Page

Styleforum is proudly sponsored by