News : Want a Job at Paul Smith, Cecilie Bahnsen or Naked Wolfe?

Monday, September 4, 2023

Want a Job at Paul Smith, Cecilie Bahnsen or Naked Wolfe?

In this week's Careers Newsletter, read BoF senior correspondent Sheena Butler-Young's latest: How to Keep Employees Happy After a Merger.

"Zero communication — none."

That's how one former Calvin Klein marketing executive remembers the brand's acquisition by Phillips-Van Heusen (now PVH Corp.) in 2003. Two decades later, he still has vivid memories of the frantic months that followed the deal's closing. With little information available, the rumour mill ran wild.

"We were all worried about 'are there gonna be layoffs? Are we going to be absorbed into the master company? What was PVH buying exactly and why?'" the executive said.

Many didn't wait around to find out. The executive recalls some two dozen corporate employees jumped ship in that period. (He stuck around, but now works for a different fashion company. He requested anonymity because he is not authorised by his current employer to speak with the media).

Recently, fashion deals have come at a frenetic pace. In the past month alone, Coach parent Tapestry agreed to buy Versace and Michael Kors owner Capri Holdings for $8.5 billion. Australian label Zimmerman sold to Advent International in a reported $1.5 billion deal and intimates start-up Parade was snatched up by Ariela & Associates International. In June, Kering purchased the fragrance house Creed.

The strategic objectives behind an acquisition are usually laid out in the deal announcement: buyers are chasing a bigger market share, geographic expansion, or see cost savings and greater pricing power from combining two former competitors. Often though, executives lose track of a critical component: the people who will determine whether those goals are met.

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