The quickly growing Vince brand appears to be several steps closer to the public markets.
The brand’s parent, Kellwood Co., recently hired Lisa Klinger to be chief financial officer — giving financial lead of the company to an executive with recent experience with a retail initial public offering. Klinger last month resigned as executive vice president and cfo of The Fresh Market Inc., where she earned high marks for her handling of the firm’s 2010 IPO.
Kellwood, which is owned by Sun Capital Partners, is said to be working with Goldman Sachs as it explores an IPO for Vince, although it is not clear if the investment bank has been officially hired to put together an offering. Goldman Sachs declined to comment.
One financial source familiar with the company noted: “When businesses are being run by private equity, sometimes they have cfo’s in place who are good cfo’s but aren’t public market cfo’s, and sometimes they want to [shift] to someone who has relationships with equity investors and other people in the regular financial markets.”
If there were an IPO, most observers expect that it would be a partial spin off of Vince. That would leave Kellwood holding a significant stake in that business as well as a number of other, less profitable businesses, such as Rebecca Taylor, Sag Harbor and My Michelle.
Kellwood’s third-quarter earnings before interest, depreciation, taxes, amortization and restructuring rose 13.8 percent to $19.8 million from $17.4 million a year earlier, a company spokeswoman confirmed to WWD. That’s a good jump, especially considering sales for the three months inched up 3.6 percent to $215.5 million from $208 million.
Vince is seen as Kellwood’s financial engine. The brand is estimated to have about $60 million in EBITDA on sales of $225 million to $250 million.
In considering an IPO for Vince, Kellwood is following the steps of Michael Kors Holdings Ltd., which went public a year ago and reawakened investors to the potential gains to be had with a quickly growing fashion brand.
Breaking News: @louisvuitton's men's artistic director @mrkimjones is leaving the French fashion house after nearly 7 years. Jones joined Louis Vuitton in 2011, following a three year tenure as creative director of British luxury goods brand Alfred Dunhill. Jones is to exit Louis Vuitton after showing his fall 2018 collection for the brand in Paris on Thursday. Read the full exclusive story on WWD.com. Link in bio. #wwdnews #wwdfashion
For men’s fall 2018, @giuseppezanotti drew on elements from streetwear, sport, biker, combat and rock ‘n’ roll. Pictured here are a pair of shoes from the collection, featuring zippers, rhinestones, and silver hardware. Head to WWD.com to see a roundup of the accessories from Milan’s men’s fall 2018 shows. #wwdfashion (📷: Andrea Delb)
To celebrate the 25th anniversary of @ralphlauren’s snowboarding collection, the brand is mining its archives. The iconic brand is reintroducing vintage styles and dropping new designs for a color capsule that will be available in Ralph Lauren stores and @openingceremony on January 25. The capsule will consist of 10 pieces, including the Snow Beach Pullover, pictured here, which is a collector’s item that rapper Raekwon wore in Wu-Tang Clan’s “Can It Be All So Simple” video. #wwdfashion (📷: Tom Gould)
For @rochasofficial’s pre-fall 2018 collection, creative director Alessandro Dell’Acqua channeled the sophisticated and intriguing Catherine Denevue in the film “Belle de Jour.” Polished collarless coats, midi skirts, suits and ’60s graphic motifs were all featured in the collection, adding a sense of discreet luxury. See the rest of the photos on WWD.com #wwdfashion
“We tried to produce clothing of that couture quality, but the most daunting part was that we only had a matter of days [to do it],” said costume designer Lou Eyrich, who recreated Gianni Versace’s iconic looks for @americancrimestoryfx. Eyrich searched online retailers and vintage shops for original pieces from the design house and for @penelopecruzoficial, who plays Donatella Versace. Head to WWD.com to read how she created the Versace world. #wwdfashion
Only three months after her stellar debut catwalk season, @kaiagerber has inked her first big design collaboration –– with @karllagerfeld. The collection blends Lagerfeld’s Parisian chic aesthetic and the model’s signature West Coast casual style via RTW, accessories, footwear and more. The #KarlLagerfeldxKaia collection will launch in September with a series of events. Get all the details on WWD.com. #wwdnews #wwdfashion
Harrods plans to remove the famous statue of Princess Diana and Dodi Al Fayed from the bottom of the Egyptian escalators and hand it back to Mohamed Al-Fayed. “We are very proud to have played our role in celebrating the lives of Diana, Princess of Wales and Dodi Al Fayed at Harrods and to have welcomed people from around the world to visit the memorial for the past 20 years,” said Michael Ward, Harrods managing director. “With the announcement of the new official memorial statue to Diana, Princess of Wales at Kensington Palace, we feel that the time is right to return this memorial to Mr. Al Fayed and for the public to be invited to pay their respects at the palace.” More on the news, with reporting by @loreleimarfil, at WWD.com. #wwdnews