Fashion investing | Return of the strategic investor?

In Fashion houses are interested by strategic investors, especially Italian market in stead of investing in luxury brand in USA. From this post I will show you "why strategic investors are not invest in USA fashion market?"

Apax Partners, the London-based private equity firm, has refused to take a stake in Escada. Apax stated that “the recent evolution of the stock price and the weakness of the international financial market do not give a basis for pursuing the project.” This is the right decision because the profit of Escada has fallen by about 25% compared to 2007, and it was estimated by EBITDA. And another reason is recessionary condition of the company. Moreover, Escada's shares fell by 10.8% on Wednesday to 14.35 euros. From these reasons, this does not a good luck for Cavalli, but another fashion house, such as, Blackstone, The Carlyle Group, Candover, Cinven and Permira are all interested in taking a stake in the Italian company. While Cavalli business is better than Escada, but Mr.Cavalli refused all of the investors. Furthermore, tha valuation of Cavalli is more than 1 billion euros.

In conclusion, we can see that fashion market is so complicated, but many strategic investors still interested to invest for their money; moreover, when they invested on some company, the result is good or bad. We can't predict that, so I think the fashion investing have a risk to invest and fashion market is unexpected. No matter what is the result, but the strategic investors will get a lot of experiences from it and learn them that how to achieve in fashion market.

Source:http://www.businessoffashion.com/2008/04/fashion-investing-return-of-the-strategic-investor.html