Wednesday, September 29, 2010

Kellwood, Burned By Sun Capital, Burns Kimora?

As I continue to research this Kellwood, Kimora Lee Simmons and Baby Phat situation, the plot gets thicker and thicker and I'm getting angrier and angrier. I stumbled upon this New York Times article earlier today, Sun Capital Gets Hostile With Kellwood. And, this one, For Sun Capital's Partners, Madoff Losses, Layoffs and Another Bankruptcy, and this one Kellwood Accepts Sun Capital's Takeover Offer, among many, many others about Sun Capital's aggressive attempts to acquire Kellwood Company in 2007 and 2008.

The two guys in the photo above are Marc Leder (left) and Rodger Krouse. They are the founders of Sun Capital Partners, a private equity firm. Pretty young guys to be kicking up so much dust to get their hands on Kellwood. Their reputation preceeded them at Kellwood I'm sure, because they've left a trail of tears behind them in their apparent quest for world domination.

Just over a year after they snatched Kellwood, Josh Kosman wrote this in an article for Lexis Nexis about Sun Capital:

Sun Capital Partners, which just a couple of years ago was among the hottest private-equity groups in the country, has fallen upon hard times of late - a victim of the recession, bad management decisions and - according to critics - outright greed.
Right after they acquired Kellwood, Jason Bernzweig, vice president of Sun Capital said this in a Reuters article:

Jason Bernzweig, vice president of Sun Capital, said the firm is prepared to commit "substantial resources beyond the purchase price to build Kellwood's business" and plans to "work closely with management and employees at Kellwood to strengthen the company and develop its branded portfolio."
Well, we know that's a lie because they got their mitts on Kellwood in February 2008 and before the year was over, Kellwood was trying to give Holly Dunlap and her Hollywould, Inc., maker of handbags and shoes, the boot. Kellwood says that the plans were in place before the takeover by Sun Capital, but I don't believe that either. They did at least have the decency to offer a brief statement about the split, stating that both parties had:
"mutually agreed to explore a range of strategic alternatives for the business".

I'm so sure. What I'm not sure about is why Holly was given the courtesy of a statement when Kimora was not. I have never even heard of any Hollywould, Inc. No disrespect to Holly. Myself and millions of others do know who Kimora Lee Simmons is and she's sent away in the dark of night? The hell?

So, what's the deal? Is Sun Capital a fu*k up that bit off more Kellwood than it could chew, subsequently leading to the untimely dismissal of Kimora Lee Simmons and her staff from Baby Phat/Phat Fashions, or are they both (Kellwood and Sun Capital) fu*k ups who just didn't know what to do with a brand that started out with an urban and African-American slant, but which grew to become so much more, crossing all demographics? Whatever the case, they fu$ked up because I'm going to work hard to see to it that this is a red Christmas for both of them where Baby Phat is concerned. You didn't have the decency to let the customer base know that you've unceremoniously shown Kimora the door, continuing to try to make sales off of unsuspecting buyers. That has to and that will stop. No respect? No dollars. If you want to know how you can still support Kimora, visit her website, --Sugar

No comments:

Post a Comment