Struggling fashion company Tommy Hilfiger was purchased on Friday by British investor group Apax Partners.
The deal said to be valued at $1.6 billion dollars, comes a year after the company purchased the Karl Lagerfeld with the intentions of moving the brand upscale. After the Karl Lagerfeld buyout, the company was attempting to solidify it’s position in the American part and put itself on the market for sale. Several news reports fingered Wal-Mart and investment groups as potential suitors.
Recent reports placed Apax partners as in the lead to take over the assets of the company. Speaking with AFP Michael Phillips, a partner at Apax said the investment group “has a long track record of successful investments in the retail and consumer sector.”
The company will no longer be public which according to Phillips will give it the flexibility “to enable the business to grow on both operational and financial levels”. Tommy Hilfiger himself will retain his role as cheif designer and strategic adviser. Company Chief executive David Dyer will be replaced by Fred Gehring who is now head of Tommy Hilfiger Europe.