State of the Economy. Tommy Hilfiger Puts IPO on Hold

January 25, 2008 • Fashion


With Apax Partners putting the brakes on Tommy Hilfiger‘s initial
public offering, other fashion firms
with stock market aspirations may follow suit in this stormy economy. Apax said volatile
market conditions had forced it to postpone the Hilfiger Group IPO in
the interest of the company. "For now, it’s business as usual," the
statement said.

The Hilfiger offering, which Apax never formally
unveiled, was set to lead a pack of fashion IPOs this year, including
Prada SpA and Ferragamo SpA. Both of those companies, however, said
Thursday that their plans remain unchanged.

"Nothing has changed
from the earlier stated position of the company’s desire to list in
2008," said a Ferragamo spokesman. "It is a particularly delicate
moment, and for that reason we are still making no comment about our

According to WWD, Industry sources have indicated Prada won’t make
any decision for another few months, when market conditions are
clearer. If Prada does eventually go ahead with its oft-postponed IPO
this year, sources have said it will be in the latter part of 2008.

regard to Hilfiger, a source close to the company said Apax could wait
"up to a year" to rekindle the IPO flame. "The Hilfiger business is
going great guns, investor feedback was positive, and the thinking was,
why jeopardize a good thing?" the source said, adding, "In time, the
business will be bigger and better. Apax can wait, there is no need to
exit now."

Read "Putting on the Brakes: Delay in Hilfiger IPO May Have Ripple Effect"


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