Tommy Hilfiger Sold* updated

[Ceptuouse]

Tommy Hilfiger has announced that he is considering selling his company after receiving a bid from an interested buyer. The Hong Kong-based company, which last week agreed to pay $18 million in back taxes to settle a year-long federal investigation, is thought to have hired JP Morgan to run the sale. However, the process is expected to take several months and a deal is not certain

 

[*JJ*]

i call it!!!
i have 5 bucks but i'll throw in a pack of tick tacks.

 

[liberty33r1b]

i guess this should rather be posted in the "designers and collections" section....

 

[*DrAma*]

how much do you think its worth?

 

[Rachelle]

don't know, but whatever it is, it's probably going to be a rip off. their clothes are wayyy too overpriced.

 

[mdankwah]

how much do you think its worth?

it might be worth a lot more than we might think

 

[Diorling]

I thought I already posted here...Strange


Well quite frankly, Tommy Hilfiger the brand is in such a bad state I dont think Tom Ford & Domenico could save it. The clothes are cheap, little to no design, they literally have nothing going for it. That company in Hong Kong should save thier money and start a whole new company, at least people wont remember the plastic metallic parkas and Tommy using the n-word...

 

[ultramarine]

I thought I already posted here...Strange


Well quite frankly, Tommy Hilfiger the brand is in such a bad state I dont think Tom Ford & Domenico could save it. The clothes are cheap, little to no design, they literally have nothing going for it. That company in Hong Kong should save thier money and start a whole new company, at least people wont remember the plastic metallic parkas and Tommy using the n-word...

I completely agree ... I remember that someone posted that Tommy Hilfiger was thinking on buying Lagerfeld Gallery? Just picture how much money do they have ... argh!

 

[faust]

Sold

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Apax Buys Tommy Hilfiger for $1.6 Billion

By ALEKSANDRS ROZENS, AP Business Writer 8 minutes ago


Clothing company Tommy Hilfiger Corp. said Friday it agreed to be purchased by Apax Partners, a private investment company, for $1.6 billion, or $16.80 a share, in cash.
Hilfiger said it expects the deal to close by Spring 2006 and is subject to shareholder approval.
The offer is a 5 percent premium to Hilfiger's Thursday closing stock price of $16 on the New York Stock Exchange. Hilfiger shares fell 3 cents to $15.97 in early trading after the news.
Apax Partners, which operates in the U.S., Europe, Israel and Asia, has invested in private and public companies, among them Phillips-Van Heusen, Tommy Bahama, Spyder Active Sports, Dollar Tree Stores and the Children's Place.
"This is an exciting new phase in our evolution as a global lifestyle company ... in addition to ensuring the strength of the Tommy Hilfiger brand at the higher end of the spectrum, we can continue to move ahead with the already successful global expansion," Tommy Hilfiger, the company's founder and principal designer, said in a statement Friday.
Laura Brightsen, spokeswoman for Apax, said there were no specifics available about its growth and expansion plans for Hilfiger.
Hilfiger plans to remain actively involved in the company. He entered an employment agreement in which he will continue as principal designer and chairman of the company's strategy and design board after the deal closes.
Fred Gehring, chief executive officer of Tommy Hilfiger Europe, and Ludo Onnink, chief financial officer of Tommy Hilfiger Europe, also agreed to enter new employment agreements when the buyout is completed.
J. P. Morgan Securities Inc. acted as exclusive financial adviser to Tommy Hilfiger Corp. Citigroup and Credit Suisse First Boston provided financing for support of the acquisition.
Tommy Hilfiger, through its subsidiaries, designs and markets men's, women's and children's clothing. The company's brands include Tommy Hilfiger and Karl Lagerfeld.
Through licensing agreements, Hilfiger offers a wide range of related apparel, accessories, footwear, fragrances, and home furnishings.
Firms like Apax raise money from investors such as pension funds and college endowments. This money is then invested by Apax primarily in private and public companies. Apax manages $20 billion worth of investments and one of its co-founders, Alan Patricof, helped finance Apple Computers Inc. and America Online when they were just startup businesses.

 

[LostInNJ]

What happens to Karl Lagerfeld now...I wonder if things will change

 

[NOE]

Tommy Hilfiger has been doing poorly for some time now... Department stores have been pulling out of the line left and right.

 

[Erin]

^ Very true, NOE.

faust, thanks for the update.

I remember when Tommy was sooo very popular in the late 90's. I actually own a few things Tommy, notably, a beautiful denim skirt that I adore. But I am not at all surprised that he released his company. The profit margins have been decreasing for quite some time now.

 

[FrockRadar8]

Never bought anything of his to begin with..and then when he came out with that racist crap, i was even more turned off. Glad he's done.

 

[Erin]

^ What "racist crap"?

 

[tastes_like_chic]

I thought the racist talk was all rumours???

 

[jennifer716]

^^ i think he said something about how his clothes were for caucasians and he didn't want asians or black people to wear them? or something like that? not entirely sure..

 

[NOE]

In the mid 90's his clothing was heavily bought by many rappers (and therefore his clothing line was seen throughout the urban markets) and Tommy said something to effect of that he didn't plan on designing clothing for a urban customer (which sounded rather racists... in fact, he might have said "I didn't design 'black' clothes"). After that comment, his main customer base (african americans) stopped buying his clothes... His profits literaly started dropping after that.

 

[I_Want_That_One]

i heard that he was racist but then why do stars like beyonce, p. diddy and naomi campbell associate with him? didnt he make that perfume true star for beyonce or something??

 

[Diorling]

i heard that he was racist but then why do stars like beyonce, p. diddy and naomi campbell associate with him? didnt he make that perfume true star for beyonce or something??

The reason involves one very popular color...green...

Uh-oh, Tommy's staying as a designer, they're doomed. His clothes are sooo cheap, soo poorly made, the velvet on one of his blazers felt like sandpaper, OH and it was like $250, I could get Ralph Lauren for that much.

Anyways. Tommy Hilfiger first of all needs a total revamp. Everyone should be ousted, from the visual merchandisers to the bean counters. Basically reinvent Tommy Hilfiger, it can't be Ralph Lauren wannabe, which is what I always thought it was. Make it cool, they need a new line "Fresh American Style" what the hell? American style is tracksuits and uggs. I dont think if I were offered the job I would take it, seriously, it is a heluva lot of work to even change the brand image, you would need Toms, Johns and Karls to do that, all willing to take minimum designer wages.

Apax doesnt have a very illustrious resume, only The Childrens Place (and that's the brand image, I dont actually shop there) and Tommy Bahama is SO OLD, it's just...ancient looking clothing and stuff, and okay quality.

Poor Karl, if I had the money Id buy his brand from them (though if they had a clue they wouldnt sell) and let him do whatever, just dont go below Bloomingdales level. OH, and crochet on a dress, not in this lifetime.

 

[Trista]

My dad actually likes Tommy Bahama because he can wear their shirts (he has a skin problem so he can't wear a lot of stuff or else it will give him a rash).

But I never really liked Tommy Hilfiger. Heck, you can get it at the local outlet mall.