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Private equity firm Cinven highlights the difficulty of investing in the European fashion business, bringing luxury British shoe brand Kurt Geiger to New York-listed fashion group Steve Madden for around £299 million in a deal I agreed to sell it.
The UK-headquarter buy-in group bought the company for around £245 million almost a decade ago. That is, it increased its value by 18% while in possession. Buyout groups typically aim to increase the value of their owned businesses within a typical five-year span.
Founded in 1963 on Bond Street in London, Kurtgeiger’s sales declared the latest fashion investment in Europe after the sector was hit by a pandemic and weak consumer spending.
“It was a privilege to support such an iconic company. We look forward to seeing the brand continue to flourish in the next chapter,” says Maxim Crewe, head of consumer and financial services at Cinven. states.
Cart Geiger is best known for its unique name and high heels sold under the Carvela brand, with over 70 stores in the UK and the US, and also operates in Europe, the Middle East and Asia.
Cinven said that Kurt Geiger expanded its international presence and online sales during the ownership period.
A business-know-knower said revenue was around £400 million per year through January 2025, up 42% compared to the year until December 2015 when Cinven agreed to buy the company. I did.
The pandemic has led to store closures, and the tendency to work from home has led to people who buy fewer shoes and handbags, they said. However, activity has since recovered beyond pre-pandemic levels.
Among the struggled private equity investments in European fashion groups, Dr. Martens is 80% below the price when it was raised by Permilla in 2021.
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The broader challenges faced by private equity companies seeking to withdraw their businesses also came on Thursday, when HBX Group, a hotel room wholesaler with Sinben, was one of its shareholders, was 11 in its first public offer in Spain. It was highlighted because it fell to %.
High interest rates since 2022 have contributed to a decline in the company’s valuation, causing a price cracking between sellers and potential buyers. Prices have since been falling, but the post-pandemic slowdown in the IPO market continues to hamper the exit routes for major portfolio companies.
