Blog: M&A juggernaut continues apace

Petah Marian | 6 June 2012

The M&A juggernaut continued apace last week after private equity firm Sycamore Partners reached a deal to acquire troubled US women's wear retailer Talbots for US$2.75 a share - a significant drop on its recent US$3.05 per share offer.

The deal came less than a week after the two companies let an exclusive negotiating period expire after saying they had been unable to reach an agreement on the sale of the business.

The Jones Group also revealed it is to acquire the Brian Atwood footwear brand. The move will help accelerate the development of Brian Atwood as a global luxury brand,"supporting the expansion of his vision into other categories".

Indeed, the past week or so has seen some late spring-cleaning from Hanesbrands and Nike.

Hanesbrands announced plans to cut the production of basic apparel used in screen printing, exit its private label business, the Outer Banks sportswear brand, and sell its European operations. Earlier this year the company admitted that tougher competition has led to rapid price declines in its imagewear business.

And Nike is to sell its Cole Haan and Umbro lines so it can focus on growing its Nike, Jordan, Converse and Hurley brands. Speculation over who might acquire the two brands has already seen Sports Direct founder Mike Ashley tipped as a potential bidder for football specialist Umbro.

Some US apparel retailers found reason to smile last week, with many recording stronger May sales. According to the International Council of Shopping Centers, US retailers, excluding drug stores, recorded a 4% sales increase during the month.

As the UK returns to work after a very wet four-day Jubilee holiday, industry pundits have suggested that good weather would be one of the major factors in boosting retail sales. While analysts expect a short-term lift, they largely argued it would come on the back of several months of pretty dismal sales.

Meanwhile, smart textiles and wearable technology have the potential to change the way people dress, communicate, respond to emergencies and even entertain themselves. This fascinating four-part management briefing looks at the opportunities and risks in this nascent sector.


Asia facing up to increased competition

Increasing competition for garment sourcing contracts is seeing China not only being challenged by other countries in Asia, but by sub-Saharan African and even Russian suppliers too. And it is pushing...


Cambodia raises garment worker wages

The monthly minimum wage for workers in Cambodia's textile, garment and footwear sector is set to rise to $153 from January next year, following a vote on the issue last week. The increase marks a ris...


Sportswear initiatives start to take shape

The results of two highly-anticipated initiatives in the sportswear sphere were revealed last week: the launch of Under Armour’s new UAS lifestyle brand and the first pair of running shoes created at ...


Hanjin Shipping collapse triggers fear of West Coast port repeat

The recent bankruptcy of South Korea's Hanjin Shipping, the world's seventh-largest container shipper, at the end of August, has left billions of dollars worth of merchandise in limbo, leaving the fal...

just-style homepage

Forgot your password?