Kenneth Cole wants his company back. The New York designer is reportedly willing to spend some $148.5 million to buy out Kenneth Cole Productions Inc.’s investors.
It’s not like Kenneth Cole has been entirely squeezed out. He serves as his company’s chairman and chief creative officer, he has around 89% of the voting power, and owns about 47% of the company’s stocks.
But he’s set to make selling up very lucrative for financiers. Cole will reportedly offer its investors $15 per share in cash, around 15% more than the price the shares closed at last Thursday.
Of course that generosity doesn’t mean it’s a done deal. The shareholders must agree along with a special committee of independent directors.
Cole hopes that his business will thrive as a private company. In a letter to his board members Cole said market challenges have made his industry even more competitive, and that a more entrepreneurial point of view is vital to the company’s growth.
“I believe it is increasingly difficult to develop this type of culture in a public company context, where the public markets are increasingly focused on short-term results. I am convinced that private ownership is in the best interests of the business and the organization and that this proposal is in the best interests of the shareholders,” he said.
What do you think of Kenneth Cole’s new business strategy?
[Source: The Huffington Post]
[Image Source: Manfred Werner-Tsui/Wikipedia Commons]
