PARIS — Swiss accessories and fashion firm Bally is in play, and Kenneth Cole is said to be among the bidders, WWD has learned.
According to market sources, Texas Pacific Group, which snapped up Bally in 1999, is said to be readying an exit plan, having restructured the firm and reached breakeven for the first time last year.
Asked if the company was for sale, a Bally spokeswoman said Thursday, “We are not aware of anything.”
However, industry sources said it would be logical for TPG to take advantage of Bally’s current momentum and cash out. Over the past two years, the privately held company has cited increased sales, healthier margins and better cost efficiency.
Global sales increased between 15 percent and 20 percent in 2005, from 345 million euros to 360 million euros, or $419 million to $437 million, respectively, at current exchange, and a similar target is set for 2006.
Bally’s core product categories — with about 50 percent of sales from shoes, 40 percent from accessories and the balance from ready-to-wear — resemble Cole’s defining elements. Recently, Cole beefed up management ranks and announced a plan to upgrade its Kenneth Cole New York brand from better to the “affordable luxury” category.
A spokeswoman for Kenneth Cole said it is company policy not to respond to industry rumors.
The identity of other potential bidders could not immediately be learned.
Based in Fort Worth, TPG has been among the most active private equity funds in fashion and retail. Last year it added Neiman Marcus Group to an investment portfolio that includes J. Crew Group and Ducati Motor Holding SpA.