let's make a deal
Posted by Michael Waltzer on May 3, 2012 05:02 PM
A few of America’s biggest shoe brands owned by the same company will be going their separate ways soon. A purchase price of $2 billion works wonders to make those kinds of things happen. Collective Brands Inc., which owns such footwear brands as Sperry Top-Sider and Keds as well as discount shoe retailer Payless ShoeSource, has agreed to be sold for $2 billion and divided into two companies.
As the Chicago Tribune reports, Collective will be a collective no more, with its brands divided between Wolverine Worldwide, Blum Capital and Golden Gate Capital, which all have a tough financial road ahead for these brands.
Collective shut down 352 stores last year and planned to shutter another 123 by the end of next year. In its last annual report back in February, the numbers weren’t too rosy. Collective had a net loss of $154.1 million in its previous fiscal year. However, revenue was up 2.5% to $3.5 billion from $3.4 billion the previous year.
Wolverine, which already owns Hush Puppies, Patagonia Footwear, and Harley-Davidson Footwear, gets to add Sperry, Keds, Saucony, and Stride Rite to its brand mix, while Blum and Golden Gate will get Payless and its more than 4,300 worldwide stores as well as Collective Licensing International out of the deal.