Blog: What’s next for Kellwood?
Leonie Barrie | 13 February 2008
After five months of wrangling, Sun Capital has finally bought Kellwood. The private equity group today said its affiliate, Cardinal Integrated LLC, has acquired about 82% of Kellwood’s shares – giving it ownership of the struggling apparel maker. Kellwood will now be merged into Cardinal and become a wholly-owned subsidiary of the company.
The private equity firm, which first expressed interest in buying Kellwood last September, has so far said very little about its plans to rejeuvenate the business. All we know is that it is “prepared to commit substantial resources beyond the purchase price to build Kellwood's business,” and “develop its branded portfolio.”
Which isn’t a world away from the strategy that Kellwood was already pursuing.
The company’s management last year come up with a own turnaround plan based on reducing its exposure to private labels and repositioning the business so that 50% to 70% of its revenues would come from its higher-end lifestyle brands like Vince and Hollywould.
In January it sold its Smart Shirts shirt-making business to Youngor Group for $120m, and said it wanted its own retail operations to grow from 8% to 20% of sales.
It even consolidated divisions, trimming its women's sportswear business from seven to three operating divisions in a bid to make the organisation more agile, improve speed to market, and cut costs.
Aside from more cost cutting and consolidation – both of which are easier to do as a private rather than a public company – it’s hard to see what more the new owners can do.
And with stonger, more powerful competitors like Liz Claiborne and Jones Apparel Group also struggling to find ways to shore up their own businesses, despite having a roster more powerful brands than Kellwood, the prospects for success must look challenging, to say the least.
Some of just-style’s more eagle-eyed readers might have noticed a small change to the menu bar on the homepage: the addition of the word re:source. Yes it might be a small change – but it marks the co...
Over the past week just-style has continued to try to unravel the potential ramifications of Donald Trump’s election as the next president of the United States....
One event dominated the international airwaves last week, and on just-style too we took a closer look at the surprise election of Donald Trump as the 45th president of the United States....
As the Brexit roller-coaster continues to twist and turn, and the US presidential election campaign nears its unpredictable and possibly protectionist end, there's no doubt these events – and the perc...
- Why do modern robotics elude sportswear makers?
- Traditional financing is a misfit for fast fashion
- Bagir CEO says suit-maker is back on track
- Mexico makers bullish on Trump's proposed tariffs
- How would end of NAFTA affect US apparel industry?
- Bagir exports first trousers for H&M from Ethiopia
- US Q3 in brief - G-III Apparel, Express
- Fruit of the Loom CEO Medlin dies suddenly
- Crystal expands empowerment project to male staff
- Film documents Cambodia garment workers' stories
- Outdoor performance apparel 2016: A broader perspective
- Global market review of lingerie – forecasts to 2022
- Global apparel markets: product developments and innovations, October 2016
- Footwear Top 5 Emerging Markets Industry Guide_2016
- REPORT BUNDLE: Africa-Med, Southeast Asia and Central America strategic sourcing pack