Saturday, April 15, 2017

Carlyle's Upscale European Retailers

While American retailers slide into bankruptcy The Carlyle Group increased its bet on Italian fashion brand Twin Set--Simona Barbieri.  Carlyle bought the remaining 10% from Barbieri who will leave TwinSet's board and resign from her Creative Designer position.

Twinset is a key investment in the fashion and clothing sector at European level, combined with Golden Goose Deluxe Brand and Hunkemoller, following the (Carlyle's) previous investment in Moncler.--Marco De Benedetti
Payless Shoes serves customers with less disposable income.  Golden Goose serves the top 0.1%.  TwinSet markets its products as "accessible luxury."

As TwinSet's co-founder it would interesting to hear Simona Barbieri's take on private equity practices.  I'm sure she's experienced much since Carlyle bought 72% of the company in 2012, later upping ownership to 90%.  TwinSet took on additional debt to fund a Carlyle dividend in 2014.

It's likely Carlyle purchased her silence in addition to the final 10% stake.

Update 10-11-17:   Carlyle hired new designers for Twin Set, the same week it announced an investment in skater style retailer Supreme.