Vince Camuto has been sold to Aldo. This sale is one of many recent fashion mergers where a luxury fashion brand has sold their business to a seemingly smaller corporation. This year, Jimmy Choo and Kate Spade have also sold their business to outside brands.
Aldo will acquire all the footwear and accessories operations from the Camuto Group, which was founded by designer Vince Camuto and his wife, Louise in 2001. This merger will give Aldo a stronger stake in the fashion world during a time of uncertain financial futures for many other brands. The private Canadian company, which has over 3,000 international locations, will continue to manufacture and sell their own shoe designs for their loyal customers.
Although specific terms of the deal were not made public, this is another very public fashion merger this year. Last week, Michael Kors acquired Jimmy Choo for $1.2 billion and in May, Coach purchased Kate Spade for $2.4 billion. Fashion groups go into these acquisitions hope that expanding their portfolios of brands will help carve new territory in the oversaturated fashion market. Unfortunately, it isn’t always that easy.
Some brands have failed following mergers and acquisitions. Private-equity firms acquire luxury brands, hoping to fulfill dreams of greater success, but then realize they can’t execute their new business. Or even worse, the acquired brand loses its identity under the reign of a new parent company. Hopefully, neither will happen during this Aldo-Camuto takeover.
Since 2001, the Camuto group acquired the footwear license for BCBG, Max Azria, BCBGirls, Lucky Brand Jeans and they helped launch the first Jessica Simpson Collection shop-in shop at Macy’s Herald Square. As Aldo expands its brands, CEO David Bensadoun says the $1.5 billion company “will never go public.”