Ermenegildo Zegna Group has announced that is has acquired Thom Browne.
According to an article on WWD, Ermenegildo Zegna Group has announced that is has acquired Thom Browne. The company has acquired a majority stake of 85% in Thom Browne for $500 million. Browne himself owns the other 15% of the company and will still operate the brand as creative director along with CEO Rodrigo Bazan.
Browne released a statement saying,
“my conceptual approach to design and the long-term vision of growing a true luxury design-led collection for men and women is something we both feel strongly about as the future strength of Thom Browne … with Zegna. Thom Browne will have a partner who not only understands the fundamentals of this business, but truly embodies them and brings the knowledge and skills of a global leader.”
CEO Ermenegildo Zegna released a statement saying the company give the brand more fabrics and manufacturing and make the brand larger in global retail.
He continued to say,
“Thom’s visionary approach and his unique point of view have enabled him to build and nurture the most loyal clientele. On this strong footing, and thanks to a thriving women’s business and strong appeal with millennials, we believe that we can build long-term value for all of our stakeholders.”
Ermenegildo Zegna Group is doing what many brands and companies are doing. Acquiring brands and companies to get millennials to buy their products or own a brand that millennials already like. Some brands and companies are closing stores to sell more products online, which people shop more online than in stores. Even fashion news publications are doing that.
Thom Browne made $100 million in sales in 2016 and was estimated to make from about $120 million to $125 million in 2017. In 2018, Bazan declined to give an update on sales and profits but said they were still increasing. Thom Browne currently owns 31 stores.
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