Credit analysts, who have said an IPO for Neiman would be welcomed by the investor community, are saying that Bain Capital is also considering an IPO as an exit strategy for Burlington Coat Factory.
Burlington Coat was acquired in 2006 in a transaction valued at $2.06 billion. The retailer operates 500 stores. For the year ended Feb. 2, or fiscal 2012, the company’s adjusted earnings before interest, taxes, depreciation and amortization rose $2.1 million to $352.1 million, while net sales rose 7.2 percent to $4.13 billion. Fiscal 2012 consisted of 53 weeks. Comparable-store sales for the 52-week comps period rose 1.2 percent.
A spokesman for Bain could not be reached by press time.
It wasn’t clear if Bain would receive the same reception expected in connection with a Neiman’s IPO. One credit analyst said that Neiman’s is attractive to investors because it occupies the luxury space. Burlington at the other end is in the moderate channel, not always the most sexy of investor stories if one was to do a road show, this individual said. Another credit source said it depends on what investors are looking for at the time a company comes to market. This source believes that a Burlington IPO probably wouldn’t hit the market until after the one for Neiman’s is completed.
Bain can afford to wait. Credit analysts said Burlington’s stores are performing and factors are supporting the retailer. “It’s a well-run company right now,” another financial source said. The retail chain also recently refinanced its long-term debt, giving its owner a $300 million dividend, one credit source said.
Retailers aren’t the only ones contemplating an IPO strategy.
Executives at Vince, a division of Kellwood, which in turn is owned by private equity firm Sun Capital Partners, have been working on growing the brand, both on an accelerated basis and supposedly on strategies to maximize its potential as a global brand. There has been speculation since last fall that Sun is eyeing a partial spin-off of Vince in the form of an IPO.
Coty Inc. is also said to be rethinking its IPO plan. The beauty company, which had planned to raise $700 million for investors through an IPO in October, is believed to be eyeing that possibility now that Michele Scannavini has had some months under his belt as chief executive officer before facing Wall Street. He took over the post on Aug. 1 upon the retirement of Bernd Beetz.
There have been rumblings of a Coty IPO in the past few weeks, and The Financial Times reported Tuesday that the renewed efforts could come as early at next month. A successful IPO would provide an exit for the Benckiser Group.
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