Offers expected for Tommy Hilfiger
Tommy Hilfiger Corp., which put itself on the auction block in August, is expected to have three offers by Friday, according to a report published Monday.
According to The Wall Street Journal, the expected bidders are an alliance between investment company Apax Partners Ltd. and clothing company Phillips-Van Heusen Corp; an alliance including Hong Kong logistics company Li & Fung Ltd., Iconix Brand Group Inc., the owner of Joe Boxer-brand, and investment firms Oak Hill Capital Partners LP and Perry Capital LLC; and private equity firm Sun Capital Partners Inc. The Wall Street Journal cited sources familiar with the matter.
Furthermore, according to the report, Wal-Mart Stores Inc. is involved in the auction’s final negotiations, pursuing a licensing deal with the eventual winner that would put the brand on the shelves of the discounter. The move would fit into the world’s largest retailer’s strategy of bolstering its image by selling high-end electronics and more fashionable clothing.
Officials at Wal-Mart and Tommy Hilfiger could not immediately be reached for comment.
The Hong Kong-based fashion company has been aiming to expand as it struggles with languishing sales of its brand at department stores. In November, Hilfiger announced that for the current fiscal year, it expects revenue to decrease in the mid to high single digit percentage range, a somewhat greater decline than previously forecast.
Shares of Tommy Hilfiger fell 15 cents to close at $17.75 Monday on the New York Stock Exchange.
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