Tod’s Founders Ditch Buyout Plans

Words by Retail Bum

Tod's Founders Ditch Buyout Plans
Tod's Founders Ditch Buyout Plans

The founders of Italian luxury shoe brand Tod’s are giving up on their plans to buyout the company and take it private after failing to reach the required 90% ownership threshold.

The brand’s founders Diego Della Valle and his brother Andrea had launched a bid to buyout other investors for €40 per share through their investment company DeVa Finance. The brothers, however, only managed to secure 4,134,358 shares, which would have boosted their family’s share to nearly 87%.

The family will return all of the tender shares to their holders.

The brand’s decision to buyout its shareholders stemmed from its founders’ desire to relaunch the business and improve its appeal among younger consumers.

Despite the failure, the family said that the goal to revitalize the brand has not changed.

“From tomorrow, we will all work to achieve in the necessary timeframe the realization of a project that we hope will be very successful,” it said, pointing to the brand’s strong structural foundation.

Last month, the brand reported that its revenue had surpassed pre-pandemic levels. Tod’s generated total revenue of $464.7 million by the end of June, with the Americas and Europe driving sales. Meanwhile, operating profit reached $17.6 million, a significant improvement over the $2.6 million loss recorded a year ago.

 

Photo credit: Tod’s

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