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Italy| Ermenegildo Zegna Acquires 85% of Thom Browne To Attract Younger Audiences

Aug 30, 2018.Stephanie WuRome, IT
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Thom Browne has announced on August 28th that Italian menswear Ermenegildo Zegna Group has acquired 85 percent stake of the company with Browne, the namesake and chief creative officer as the remaining shareholder. The Italian fashion house reached an agreement of a value at approximately $500 million. CEO Rodrigo Bazan, who joined Thom Browne in May 2016 will continue his role.
Thom Browne who has had a series of investors over the years from Japan’s Stripe International in 2009, to Sandbridge Capital which held the majority stakes of Thom Browne in March 2016. The Zegna Group’s additional leverage will help benefit and support the business of Thom Browne using Zegna’s expertise in fabrics and manufacturing to expanding its retail footprint globally. Unsurprisingly, Thom Browne’s appeal in the aesthetics of the millennial mindset for a youthful sensibility reaches a new market for Zegna to reel in a younger set of customers. According to New York Times, Thom Browne generated $100 million in sales in 2016 reaching $125 million in 2017.