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Italy | Is It Really the Right Move For Zegna’s Acquisition of Thom Browne?

Aug 31, 2018.Ichiro KumegawaRome, IT
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The relationship between designers and major companies is a difficult one. Will Ermenegildo Zegna Group appoint Thom Browne as the brand director of Zegna?  If so, we can estimate that the corporate value of Thom Browne is worth US$ 500 million, however this is one risky investment worth US$ 270 million. The creative director of Ermenegildo Zegna is currently served by Alessandro Sartori, but appointing Thom Browne will just be a matter of time. In just 50 years, Thom Browne's existence has played a huge part in men's fashion and his designs has created a new and immortal style for later generation. Giorgio Armani and Hedi Slimane also have set the same bar. "If he’s a legendary designer, is it worth the risk at purchasing 270 million dollars for a company that may be in deficit?" the acquisition isn’t from Zegna Mode Museum wasn’t the one who made the purchase but Zegna Holditalia S.p.A. If Thom Browne was to serve as creative director of Zegna, it’s only a matter of paying 2.7 million dollars per year, however it sounds like a bad decision to acquire the entire company. It’s not guaranteed that his position as a permanent creative director is forever and even if Thom fails, you can’t cover it up by saying it’s just a small “change. According to The New York Times, the estimates that the annual sales in 2017 was 201 billion dollars and my guess is that they’re in the red.
My two cents on why Stripe International sold the stocks to Sandbridge Capital in 2016 was an action to clear the deficit before the company went public. Although the acquisition of Thom Browne was to renew the Zegna brand and impart it with a youthful image, why bother acquiring the entire company? Maybe I’m wrong about my speculations that Thom Browne is actually not in deficit and I find the case a little puzzling.