14 DAY TRIAL // After the boom Tommy Hilfiger registered back in the ‘90s, the brand has seen somewhat of a plunge in sales, only made worse during the recession. Given the massive investment made into expanding the brand and said plunge in sales, Apax Partners has decided to sell the brand to the Phillips-Van Heusen Corporation, which also owns Calvin Klein, as Times Online informs.
It’s no secret that the fashion industry has taken a serious hit in recent times, with some of the biggest brands being forced to either file for bankruptcy or make compromises and team up with a celebrity to generate more interest in their creations. The Tommy Hilfiger sale fits in neither of these categories, though it does come as a result of poor sales, the aforementioned publication says, in the sense that the deal will prove very profitable for both parties involved.
“The Phillips-Van Heusen Corporation paid €2.47 billion (£2.2 billion) for Hilfiger, more than doubling the private equity group’s investment. Apax, which took Hilfiger private four years ago, tried to list it in 2008, but was forced to pull the float when the banking crisis hit. Apax will receive €2.2 billion in cash from Phillips-Van Heusen, plus €276 million of shares in the company,” Times writes.
“The American conglomerate, which has more than 900 stores in the United States, Europe and Asia, already owns several brands, including Calvin Klein, and licenses others, such as Ted Baker. Christian Stahl, an Apax partner, told The Times that the sale was the perfect alternative to listing Hilfiger in New York. ‘This was basically like taking the company public through the backdoor,’ said Mr. Stahl, who will join the board of Phillips-Van Heusen,” the publication further informs.
With Tommy Hilfiger changing hands from British buyout group Apax to Phillips-Van Heusen, the brand changes ownership for the second time in four years. Apax Partners bought the brand in 2006 for $1.6 billion, in a period when it was having a very troubled time.