BUSINESS OF FASHION: LVMH in talks to acquire stake in Proenza Schouler
Rumors abound as LVMH Moët Hennessy Louis Vuitton expressed interest in acquiring a stake in the New-York based fashion house, Proenza Schouler. Talk has involved a 40% stake of Proenza Schouler that both Andrew Rosen and John Howard, along with other investors, jointly acquired from Valentino Fashion Group back in 2011. Amidst the magnitude that surrounds this potential deal, what is the likelihood it will even be completed? Will Proenza Schouler indeed become the next luxury brand to be housed alongside Bernard Arnault’s collection?
It remains unclear if the founding designers of the brand are willing to surrender their majority control to be part of the fashion powerhouse.
LVMH’s interest falls on the heels of luxury fashion giants looking to invest in and/or acquire brands from young designers. Just last year LVMH closed two deals involving a 52% stake in footwear brand Nicholas Kirwood, and a 46% holding in J.W. Anderson. The ever evolving eyes of LVMH have been on Proenza Schouler for some time now—last year the Left Bank department store, Le Bon Marché (controlled by LVMH) opened a Proenza Schouler section. Most recently, LVMH hosted an extravagant exhibit of 80 favored looks from the brand designed by Jack McCollough and Lazaro Hernandez.
It’s been cited that both McCollough and Hernandez were approached about designing Givenchy ten years ago. Now it seems as though the French fashion world is focusing greatly on American markets that may lend a hand in expanding and fueling their brands.
Now the question is, will Proenza Schouler be willing to tag along for the ride in the hopes of promoting their own brand through LVMH?