I don’t know if Tory Burch ever flies coach, but I did just read she does think about it a lot. At least Coach the bag brand. According to today’s NY Post, Burch has been talking to Coach about buying a large share of her label.
Even though discussions between the two labels recently broke off, they’re not necessarily dead, The Post learned from sources close to the negotiations. Even if this deal does not go through, she is still hoping to land a deal that values her company at upwards of $2 billion. Not bad for a company that started in 2004!
Lower-priced luxury brands like Tory Burch are among the most lucrative and fastest-growing segments in retail, so a deal of this magnitude would be huge. Apparently Burch talking to all types of potential investors, including private-equity firms, overseas investment funds and high-net-worth individuals.
Let us not forget Burch’s ex-husband Christopher Burch, serial retail entrepreneur who co-founded the label with his then and owns nearly 30% of the company. The two are also at odds over Christopher Burch’s newest retail venture, C. Wonder, which some critics (an Tory herself) say looks like a lower-priced version of Tory Burch. potential lawsuit is pending. But don’t feel badly for Mr. Burch, he stands to make a ton of money if Tory Burch does sell a giant stake. However one insider said, “No investor is going to come in [to buy the Tory Burch stake] while this C. Wonder situation remains unresolved.”
It’s going to get really interesting.
Source: NY Post