This merger and acquisition is expected to value the Tom Ford brand in the billions of dollars, but no clear numbers have been given.
Why does tom ford want to sell his personal brand?
The Tom Ford brand produces men’s and women’s fashion and leather accessories. Accessories (sunglasses and watches) and cosmetics are all licensed by Mr. It is estimated that the Tom Ford brand will reach a billion dollars if sold
Tom Ford is preparing to “sell himself”. Exactly the designer is planning to sell his own brand name.
According to an unnamed source, Tom Ford is working with financial advisors from Goldman Sachs to evaluate the personal brand. During 17 years of business, the company is still private and does not need to report financials, so only internal investors can know the data situation. However, it is estimated that the total brand value can reach billions of dollars.
Bloomberg was the first media to report on this deal. However, so far, both Tom Ford and Goldman Sachs representatives have remained silent about the incident.
It is too early to conclude whether Tom Ford will sell the brand. Maybe he will just sell a few shares and continue to linger to design for a new partner. Or he could choose to merge into a corporation and leave altogether. Of course, there is also the possibility that Tom Ford will decide not to sell the brand – but this is the least likely because if he wasn’t ready, he wouldn’t order due diligence from Goldman Sachs, the second largest investment bank. Global.
The success of the Tom Ford brand: It took only 17 years to captivate the market
The Texas-based designer is known for rebuilding Gucci’s reputation in the 1990s. After Gucci went downhill due to a family scandal, Tom Ford brought new life to the brand with sexy designs. yet minimalistic.
Later, Gucci and Yves Saint Laurent merged to form the PPR group (present-day Kering). However, Tom Ford could not find a common voice with the management and left in 2004. In 2005, Tom Ford founded his own brand with his partner Domenico De Sole, who used to hold the position of Gucci president before the brand. the brand is sold to PPR.
The fledgling brand found rapid success in the menswear and private sector. In 2010, Tom Ford launched a women’s fashion line. His designs are worn by the biggest global stars such as Beyoncé, Gwyneth Paltrow, and Jennifer Lopez.
However, the beauty industry is the “money-making” field for Tom Ford. Through a partnership with Estée Lauder, Tom Ford licenses his personal brand for fragrances and beauty cosmetics. According to a financial report from Estée Lauder, Tom Ford’s line of cosmetics and fragrances has consistently experienced surprising growth since its launch in 2006.
In just 17 years, Tom Ford has successfully established itself as an established luxury brand. The designer was also respected when he was awarded the position of President of the Council of Fashion Designers of America (CFDA) in 2011.
Why did Tom Ford decide to sell the brand?
Although Tom Ford and Goldman Sachs are still quiet about the deal, experts say there are three main reasons why designers are willing to sell their personal brands.
First, this is a good time to sell brands.
During the pandemic years, the luxury fashion industry has flourished. Consumers take budgets that are used for travel and dining to be spent on shopping.
Traditionally, a company will be valued based on advertising/sales revenue over the past 3-5 years. Therefore, good sales during the two years of the pandemic will help boost brand value.
High inflation in 2022 and the economic downturn are also expected to have little impact on the business of luxury brands. According to Morningstar Research, a market research and analysis firm, luxury items are usually not affected in the short term by an economic downturn, “unless the prolonged situation severely affects the wallets of the world. super-rich”. Morningstar Research representative, researcher David Swartz emphasized that investors are still very confident about the development ability of the luxury industry.
Therefore, selling off the brand in the early stages of the economic downturn is a wise move for Tom Ford.
Maybe Tom Ford wants to spend his time on projects outside of fashion.
Besides fashion design, Tom Ford is also a filmmaker. Maybe he wants to sell the brand to reduce the daily workload to easily pursue art projects.
Recently, Tom Ford also announced an investment in finding materials to replace single-use plastic in product packaging. The contest with a prize of 1.2 million USD found 8 finalists. Does Tom Ford want to take a break from fashion design to invest in materials that will change the world?
It is also possible that the designer wants to retire.
Designer Tom Ford was born in 1961, now 60 years old. He is not a very old designer (Giorgio Armani, Tommy Hilfiger, and Ralph Lauren are all working despite reaching the U80 threshold).
However, in the past year, Tom Ford’s partner, Richard Buckley, passed away. An American journalist who was the first and last love of designer Tom Ford. The couple shares a son, born in 2012. The departure of Richard Buckley, when their son was 9 years old, was too much of a pain for Tom Ford. After the death of her husband, the designer rarely appeared in public. Perhaps, Tom Ford wants to sell the brand to spend time recovering and raising his son.
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