Blog: PVH eyeing Warnaco?
Leonie Barrie | 31 August 2006
Is Phillips-Van Heusen Corp lining up as a potential suitor for Warnaco? That’s the buzz doing the rounds at the Magic Marketplace trade show in Las Vegas a Reuters news report said yesterday. Although no-one’s commenting on such speculation – which has been persisting now since June – the rumours are apparently based on calls from shareholder Barington Capital Group LP, which owns a 5.6% stake in Warnaco and last week urged it to consider a possible sale of the whole company. The fund also suggested Warnaco should consider selling off brands and licenses that aren't central to its business, such as the company's underwear and swimwear segments.
Earlier this month Warnaco, which licenses apparel under names including Speedo, Calvin Klein Jeans and Nautica, reported a 46% slide in second-quarter profit. It has recently been hit by a series of mis-steps, including a financial restatement, missed revenue and profitability targets, and extra costs associated with the implementation of a new software system in its swimwear division.
There’s no doubt Warnaco and Phillips-Van Heusen would be a good fit, especially since Warnaco licenses the Calvin Klein brand from Phillips-Van Heusen. But there are also suggestions that a private equity buyer might also be waiting in the wings. Just look at recent examples: Bain Capital was a frontrunner in the bidding for Jones Apparel Group, and Goldner Hawn Johnson & Morrison has taken a majority stake in Allen-Edmonds Shoe Corporation. Obviously time will tell which way it’s going.
Confirmation that digital supply chains are top of mind for apparel industry executives came last week with the latest plans from global sourcing specialist Li & Fung....
As a barometer of the issues top of mind for apparel sourcing executives, it is hard to beat the annual Prime Source Forum in Hong Kong. ...
Over the past month, Donald Trump and his team failed to offer any clear plan to ensure Americans would "Buy American, Hire American" - while the British government's attempts to clarify the specifics...
The Bangladesh government was forced to respond late last week to pressure over its crackdown on labour activists after a number of global brands and retailers, including H&M and Inditex announced pla...
- Rana Plaza four years on – Timeline of change
- Trump and Brexit get a dose of pragmatism
- Industry groups reaffirm commitment to Bangladesh
- Using worker surveys to drive supply chain change
- Where does VF supply chain sit in growth strategy?
- Nike filed patent for "reinforced denim"
- Gap unveils five-year sustainable fibres pledge
- Adidas and Reebok top transparency index
- Adidas to digitalise Speedfactory concept
- Lenzing unveils new sustainability strategy
- Global market review of denim and jeanswear – forecasts to 2022
- When Things Go Wrong - A Practical Guide to Managing Common Problems in Apparel Sourcing
- Southeast Asia strategic sourcing review – a focus on Cambodia, Vietnam and Myanmar
- Clothing Market in the Top 5 American Countries to 2021 - Market Size, Development, and Forecasts
- Myanmar - ISA Country Report