Fashion Industry discussion, review, analysis, news, and information

Go public or stay private?  I’m sure that’s an idea that many fashion luxury houses toy with on a daily basis.  Going public means you get to raise cash quicker for expansion purposes, but then it also means you have to answer to your shareholders.  Decisions require team effort and if you’re a person who simply likes to call all the shots, then going public may not be for you. 

Well, for Prada and Salvatore Ferragamo, going public might be the thing to do.  However some fashion houses have been very successful even though they’ve stayed private - companies like Giorgio Armani and my personal favorite, Oscar de la Renta.  De la Renta told New York Mag a couple years ago:

“…but I always am very worried about the private investors. From the moment you sell a big percentage of your business, you know that you no longer control your business. I always thought, If I had private investors, I’d be able to expand my business, but we’re doing it now without any outside help. We’re masters of our own destinies.”

Oooh, I like that last sentence…We’re masters of our own destinies…I personally would stay private because it enables me to make decisions based on the customers needs versus what the shareholders want.  You always have the burden of having to make investors happy instead of doing what makes you happy.