Brioni to sell 25% stake

[lmaligaya]

http://www.luxist.com/2008/11/19/bri...ll-a-25-stake/

any thoughts? is this the end of Brioni quality? I havent had much experience with their clothing, but i am sure many will have an opinion here.

 

[SoCal2NYC]

Originally Posted by lmaligaya

http://www.luxist.com/2008/11/19/bri...ll-a-25-stake/

any thoughts? is this the end of Brioni quality? I havent had much experience with their clothing, but i am sure many will have an opinion here.

What does that have to do with anything?

 

[Eustace Tilley]

Originally Posted by SoCal2NYC

What does that have to do with anything?

+1 - they're just selling a minority stake to raise capital. Companies do it all the time.

 

[justsayno]

above 20% is pretty significant

 

[Christofuh]

Why do I need a hammock if I can't ski ?

 

[acidboy]

How come they didn't put it in the B&S thread?!

 

[Shikar]

Originally Posted by acidicboy

How come they didn't put it in the B&S thread?!

Could post it on ebay with a BIN....you know live.com discount and all....

Regards.

 

[Cary Grant]

Originally Posted by justsayno

above 20% is pretty significant

Agreed- it could mean changes to what they make, how they make it, etc. Not to imply that those changes, if any, would be for better or worse.

 

[The_Foxx]

interestin. a sign of the times in the current economy, maybe, where sellers of luxury items may not be making their sales numbers as projected. however, i've found recent brioni items to be an improvement in quality over the past few years, with more visible handwork in the chest/ behind the lapels, etc. in their latest model. I think the more they go after kiton customers, the more they will try to step it up in perceived quality of make.

I just wish they'd change their dumb advertising campaign, and go back to the way they did it in the 80's and 90's.

 

[gomestar]

Originally Posted by Cary Grant

Agreed- it could mean changes to what they make, how they make it, etc. Not to imply that those changes, if any, would be for better or worse.

I agree as well. I was dealing with a client who has a 4% stake in a company and he is VERY influential with the board of directors. I'm curious as to why bonds were not issued instead if they were just looking for some extra money.

And I am also curious about quality. Anytime you see cost cutting, it's to increase profits, and you increase profits to appease your shareholders. Look what happened to Prada, Church's (after prada bought them), and Jil Sander (after Prada bought them - and subsequently sold them after the brand nose dived a while ago). There are dozens of other examples out there, and history says the more public you go, the more cost cutting you will do.

I wouldn't be surprised if Brioni no longer required 2 years of formal training for its button sewers. A shame.

 

[Schnurretiger]

I can already guess what kitonbrioni will be posting in "Recent Purchases" soon.

 

[CunningSmeagol]

Do they have unions in Italy?

 

[kiLLscaLLion]

Originally Posted by gomestar

I agree as well. I was dealing with a client who has a 4% stake in a company and he is VERY influential with the board of directors. I'm curious as to why bonds were not issued instead if they were just looking for some extra money.

And I am also curious about quality. Anytime you see cost cutting, it's to increase profits, and you increase profits to appease your shareholders. Look what happened to Prada, Church's (after prada bought them), and Jil Sander (after Prada bought them - and subsequently sold them after the brand nose dived a while ago). There are dozens of other examples out there, and history says the more public you go, the more cost cutting you will do.

I wouldn't be surprised if Brioni no longer required 2 years of formal training for its button sewers. A shame.

The debt markets are stagnant and highly illiquid, causing debt securities to be overpriced. If they issued debt they'd be likely paying a very high interest rate (~10 - 15%), severely constraining cash flow going forward. Now's not the time to be raising debt capital.

 

[gomestar]

Originally Posted by kiLLscaLLion

The debt markets are stagnant and highly illiquid, causing debt securities to be overpriced. If they issued debt they'd be likely paying a very high interest rate (~10 - 15%), severely constraining cash flow going forward. Now's not the time to be raising debt capital.

This makes sense. I know corporate and real estate bonds are suffering right now.

I wonder what Brioni's bottom line is going to look like this quarter.

 

[Cary Grant]

Originally Posted by gomestar

This makes sense. I know corporate and real estate bonds are suffering right now.

I wonder what Brioni's bottom line is going to look like this quarter.

Does Italy even do bonds like we think of in the US?