California-based brand Cuyana obtained 30 million USD in a financing round supported by private equity fund H.I.G. Capital. It founders, Karla Gallardo and Shilpa Shah, stated to the portal Business of Fashion, that they intend to utilize this liquidity to: develop their retail chain via the opening of new stores (in Chicago, Seattle Washington and Texas), improve the supply chain and study new categories of products. The company, which makes handbags and leather goods its core business, manufactures more than half its collection in Italy. The iconic Work Satchel, for example (in picture, to the right), is made of 92 parts created using Italian leather. “It takes 4 hours to connect these pieces, 1.5 hours to hand-paint the sides, and 4 coats of paint to complete”. The company spends 45 USD per client on marketing activities, “but we earn 75 USD for every first purchase”, state the two founders of the business that collects 40% of revenue from loyal consumers. Among the opportunities now in reach with the new capital is also the possibility of entering the footwear segment.
Vice-versa, private equity fund Marwyn Value Investors is evaluating the sale of luxury boot-maker Le Chameau Maîtres Bottier, acquired in 2012. According to The Times, the value of the business is around 25 million UK-pounds. The brand was created in 1927 in France, and it is famous for its quality, hand-made products, crafted with excellent materials: natural rubber, leather, wool, and jersey. The fund did not confirm the news, but it is known that it is re-evaluating its assets. Le Chameau, brand that has the Duchess of Cambridge and Victoria Beckham among its clients, closed 2017 with a 7.3 million pounds loss before tax.
