Lux Brand Tom Ford Might Go Up For Sale And Shower Several Billions On Owner

Photo by Rahul Bhogal on Unsplash

Monday continues to surprise us with 2 of our favourite things—M&A and fashion, both with jaw-dropping prices. 

Luxury brand, Tom Ford, is working with investment bank, Goldman Sachs to explore a potential sale worth several billion dollars. 

The new owner of Tom Ford could also get the right to work with none other than Tom Ford, former creative director of the luxury brand Gucci. However, Tom Ford could still opt to remain independent. 

Lost Lux?

As the market turned bullish, inflation hit, and energy prices surged, luxury brands started facing rising manufacturing and logistics costs. 

Lockdowns – especially in China which is a key market for luxury spending, also proved detrimental to its growth.

The Rich Will Be Rich

Although there aren’t many concerns about luxury consumption and higher-end goods, they remain less affected unless a prolonged bear market hits the wealthy. 

The wealthy are generally in better shape even with the market downturn and will continue to splurge.

Tom Ford, what?

Tom Ford started as an apparel brand focused on luxury menswear. All its suits were licensed to and produced by recently public Ermenegildo Zegna Holditalia SpA, which will continue to produce some Tom Ford products starting next season. 

The brand also sells eyewear, beauty and fragrance licensed to Estee Lauder, and accessories such as watches and small leather goods. 

Too long? Here’s a one-liner: Luxury brand Tom Ford is working with Goldman Sachs to sell its business worth several billions.

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