American luxury brand Tom Ford has hired Goldman Sachs for a potential sale of the brand, according to a report by Bloomberg.
Citing sources, the report says that the deal could see Tom Ford valued at several billion dollars.
According to Bloomberg, the brand can choose to remain independent while the new owner might have the right to work with founder Tom Ford.
Tom Ford is headed by former Gucci President and CEO Domenico De Sole.
Here’s all we know about the potential sale of Tom Ford
Why is the brand planning to sell?
Bloomberg said that Goldman Sachs did not comment while Tom Ford’s representative could not be reached on the matter, which is not yet public.
But the report adds that the growth of luxury brands has been adversely hit due to a number of reasons, including inflation and lockdowns in key markets such as China.
The rise in costs of energy and logistics has led to a rise in manufacturing costs. But quoting a market analyst, the report said that luxury consumption might remain unperturbed by inflation unless it is prolonged.
Consulting firm Bain & Company noted in June 2022 that the acceleration of European economies, focus on diversity by US luxury brands, and South Korea’s newfound cultural dominance have contributed to the “remarkable performance” of the personal luxury goods market in the first quarter of 2022. According to the firm, the market grew by 17-19 percent, at current exchange rates, over the same period in 2021.
Who is Tom Ford?
The brand was founded by Tom Ford, the former creative director of Gucci. Ford is credited for reviving Gucci’s fortunes in the 1990s. Following Gucci’s acquisition of Yves Saint Laurent in 2000, Ford also became the creative director of the latter.
Ford launched his namesake brand in 2005, a year after he left Gucci. Two years later, he launched menswear in partnership with Ermenegildo Zegna Holditalia and released womenswear in 2010.
As per Bloomberg, Zegna’s right to produce Tom Ford is set to expire after Fall and Winter 2022 collection. But Zegna will continue to produce some other Tom Ford goods.
While Marcolin SpA produces and distributes Tom Ford eyewear, Estee Lauder Cos has the license rights to Tom Ford’s beauty and fragrance products.
Ford became the chairman of the Council of Fashion Designers of America (CFDA) in 2019 and served in the position until May 2022.
Apart from being an iconic designer, Ford has also made a name for himself as a filmmaker. He made his directorial debut with A Single Man (2009), which was met with critical acclaim. His second film, Nocturnal Animals (2015), was equally lauded and won the Grand Jury Prize at the Venice Film Festival. Both films received Oscar nominations in the acting categories.
(Main and Featured images: TOM FORD/@tomford/Instagram)
