Racked is no longer publishing. Thank you to everyone who read our work over the years. The archives will remain available here; for new stories, head over to Vox.com, where our staff is covering consumer culture for The Goods by Vox. You can also see what we’re up to by signing up here.
It's official—Philips Van-Heusen Corporation will buy Tommy Hilfiger from current owner Apax Partners for a whopping $3 billion in a deal that insiders are referring to as "industry transforming". The $3 billion acquisition is pretty mind blowing in this economy. Compared to the past PVH/Calvin Klein deal, this one is four times the size.
Hilfiger (the label and the personality) has always played a huge role in the New York fashion scene, so what does this mean for the brand going forward?
According to Hilfiger to WWD “It’s the brand I gave birth to 25 years ago and would like to be with forever. The opportunities in women’s wear are very big for us. Eventually I’d like to expand our home area and accessories on the men’s and women’s side; our shoe business is now growing, and I expect we’ll launch more fragrances." Tommy Hilfiger, who has a lifetime contract with the company, will stay on as the principal designer and "visionary of the brand", but will not have any direct role in management. Domestically, the company wants to focus on the Macy's and outlet businesses, plus if things go well, there is a chance to open more flagships. Currently, there are 10 Hilfiger stores in the US with four in Manhattan. Tommy Hilfiger's corporate and merchandising base will also remain at the West 26th Street offices.
As for the possibilities of topping the amazing Hilfiger runway show closing out New York Fashion Week Fall 2010 and bidding adieu to Bryant Park, Hilfiger seems confident about the future. In regards to PVH's management and marketing, “They’ve spent money on Calvin Klein advertising and fashion shows. They’ve stayed the course. It convinces me they respect the integrity of the designer and the brand.” So there you go. Our expectations remain high for Lincoln Center.
· PVH Buys Hilfiger for $3 Billion [WWD subscription req'd]
· Tommy Hilfiger USA [Official Site]