An optimist will look at COVID 19 as a opportunity. From the current crisis in fashion and retail will come the chance to snap up valuable brands at distressed prices. But, what makes a brand truly valuable?
Left - 1950s Teddy Boy in his classic Crombie coat
It usually starts with the name and whether it has any longevity, goodwill or future.
If that name has entered everyday lexicon then it is a very rare and valuable asset indeed. Joining the likes of Sellotape and Hoover, it rarely happens in fashion when a brand becomes the generic term, but Crombie is one such brand.
Meaning a formally tailored, three-quarters length covert coat with a contrasting velvet collar, the Crombie coat had recently become associated with the likes of Nigel Farage and Del Boy and a kind of dated city boy look.
J&J Crombie Ltd. was founded by John Crombie and his son James in Aberdeen in 1805, making it one of Britain's oldest brands. Starting as a fabric manufacturer, Crombie moved into making coats to supply armies in America and the UK during the 19th and early 20th centuries. Crombie lists Cary Grant, Winston Churchill, King George VI, Dwight D Eisenhower and John F Kennedy as distinguished wearers. From 1995 to 2004, Crombie also held the Royal Warrant as a supplier to the Prince of Wales.
A modern classic, a Crombie coat was retailing for around £900, but that is now on hold.
The brand’s home page currently reads, “In light of current world events, we have now fully suspended our retail, wholesale and supporting administrative operations until further notice. We will continue to monitor the global situation and hope to resume operations in the fullness of time. We’d like to thank our many clients for their custom and patronage and wish everyone a safe and healthy summer.”
Right - 1980s Car Dealer Arthur Daley in his Crombie
The brand has been up for sale for a while. It was formally announced in March 2020, when owner, Alan Lewis, 82, through his investment company, Hartley Investment Trust, told Drapers, “We are willing to divest non-core assets such as Crombie, which we believe would be of particular interest to a focused fashion business with the infrastructure to efficiently scale up this brand internationally, or to a retail chain looking to bolster its portfolio of unique intellectual properties.
“Crombie’s worldwide trademarks allow for expansion and diversification into a wide range of product categories, including cosmetics and accessories.”
Crombie has one store located at 48 Conduit Street in London which it sold in Nov. 2019 to a private Chinese buyer for £9.9 million with the intention of Hartley Investment Trust still occupying the building. Crombie’s turnover to the year ending March 2019 was £523,000, with a loss before tax of nearly £300,000, this was an improvement on 2018 when it was nearly £400,000 on a turnover of £430,000.
Hartley Investment Trust has interests in banking, property, energy, leisure and retail. Lancashire-born Alan J Lewis, CBE, a former Conservative Party Vice-Chairman told the Yorkshire Post in 2012, “I came here (Slaithwaite, West Yorkshire) and took over Illingworth Morris which was a public company, which was in trouble and owed the banks about £50m with 6,000 people employed and I turned it around from a substantial loss to a substantial profit and shares went from 13p to 186p.
“We concentrated on ensuring that we invested in the high margin business, low volume, rather than high volume, low margin business, so really concentrating on the quality end and the creative end of the business, and that made an awful lot of money.”
In the 1980s, the group was one of the world’s biggest wool textiles manufacturers handling almost half the wool imported into the UK. The Illingworth Morris group included up-market knitwear maker Hawico, worsted spinning operations Daniel Illingworth, suiting makers Huddersfield Fine Worsteds, chemical business Westbrook Lanolin, Woolcombers, Winterbotham Strachan & Playne (the world’s leading supplier of cloth for tennis balls and billiards tables), and Crombie.
Left - Three out of the four Beatles are wearing Tommy Nutter suits on the Abbey Road cover
Mr Lewis took the company private, making vast profits and a net lender to the money market – heralding the formation of Hartley’s investment banking division, Hartley Investment Trust, in 1983.
Hartley divested many of the brands with the implosion of the UK’s textile industry, turning many of the old textile mills into residential property and business centres, but retained the ownership of Crombie.
Another important brand Lewis owns is the iconic tailor, Tommy Nutter. In 2014, after a four year high court battle, Lewis agreed to buy the rights to ‘Nutters of Savile Row’ which left him free to use the Tommy Nutter brand.
The year before, David Mason's 'Nutters Holdings' won the right from the UK's Intellectual Property Office for the Tommy Nutter trademark to be revoked from J&J Crombie due to non-use. Mr Lewis was ordered to pay costs of more than £3,000. However, he appealed against the decision, arguing that he had kept the name in use. A spokesman for Mr Lewis said at the time, "Crombie owns the Tommy Nutter brand, and every season a range of Tommy Nutter branded clothing is available in Crombie stores in the UK."
Previously, Mr Lewis had been in talks to sell ‘Tommy Nutter’, a brand he had started with Tommy Nutter in the early 1980s when he had parted ways with business partner Edward Sexton and ‘Nutters of Savile Row’, to a subsidiary of Fung Capital - the private investment arm of the billionaire Fung family of Hong Kong. The deal never materialised.
Tommy Nutter produced a variety of legendary designs under his own name - including Jack Nicholson's Joker costumes for the 1989 Batman movie - while Crombie supplied him with the cloth. He died in 1992.
What we have here, if sold together, are two of Britain’s greatest sleeping menswear brands. One traditional, loaded in history, the other, a pioneer and icon of tailored fashion, but both heaving in icons from statesman to superstars. Confucius once said, “The gem cannot be polished without friction” and, while it would take substantial investment to bring these menswear two brands back, they have a natural sparkle and value most brands don't.
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This week sees the start of the new academic year and the return of the majority of schools in the UK. Vast numbers of the nation’s school children have not seen a classroom since March and thus the need for new school uniform became negligible. But, after almost six months away, retailers will have seen a huge spike for new school uniform and all the accoutrements that go with the ‘Back To School’ marketing push.
Left - Mendip Craft Youth Black Leather - £46
According to research by Mintel the back to school market was worth £1.16 billion in 2018. This was an increase of 36% on the previous year, when it was worth £855 million, making back to school spending the third biggest retail spending event after Christmas and Black Friday. Parents told Mintel they spent an average of £134 on school uniforms and shoes in 2018, a 6% increase compared to the average of £127 spent in 2017. Collectively, Brits spent a total of £510 million on school uniforms in 2018, up from £395 million in 2017. GlobalData, a leading data and analytics company, estimated UK shoppers were set to spend £1.7bn on back to school items in 2019, with the market forecast to grow by 1.5%. This is only slightly outperforming the annual rise in the number of pupils due to population growth.
One of the biggest back to school beneficiary brands was Clarks, who for many years was the go-to source for children’s school shoes.
But, it’s been a tough few years at this still family-owned, British high-street institution, which has seen revenues and profits falling. The latest accounts show turnover to February 2019 was £790million, down 4% from 2018 at £820.4 million. The breakdown of this was UK and ROI contributing £561.1million, Asia Pacific £135.2million, Europe £96.5million and the Americas just £0.5million.
An operating loss of £48.7million was reported, up from £3.7million the previous year.
The brand reported a ‘poor’ performance and cited it was struggling in part due to the weakness in sterling which made its goods sourced from the far east more expensive when paid in US dollars. All of this was all pre-COVID.
Right - Clarks was founded in 1825 by brothers Cyrus and James Clark in Street, Somerset
Founded in 1825 by brothers Cyrus and James Clark in Street, Somerset, where it still has its headquarters, the company has over 1,000 branded stores and franchises around the world and also sells through third-party distribution in 35 countries. The Clarks family still retains 80% of the company spread amongst more than 400 family members. The world number one in ‘everyday footwear’, Clarks sells more than 50 million pairs of shoes every year.
In February 2018, Lance Clark, the head of the Clarks shoe family, largest shareholder and inventor of the firm's iconic Wallabee shoe died aged 81. He was managing director of the family shoe company until 1994. The Clarks CEO at the time, Mike Shearwood, described Mr Clark as 'an immense character' who played 'a very significant role' in the company. He said, “We have lost an immense character who will be forever prominent in our company's history.”
Lance Clark was a leader and his extensive experience gave the company direction and many credit him for the amazing growth of Clarks in the late 20th and early 21st century.
The same year, June, Shearwood was dismissed under a cloud after being accused of ‘inappropriate behaviour’ including sexist, racist and homophobic comments.
In October 2019, he lost his case for unfair dismissal after taking Clarks to an employment tribunal. Clarks said Mr Shearwood's conduct was the reason he was made to resign, and an employment panel agreed. Allegations were made by the 56-year-old against chairman Tom O'Neil, whom he claimed adjusted the minutes of board meetings.
After much fanfare, in January 2019, Clarks announced a it was closing its new manufacturing facility in Street after failing to meet manufacturing and cost targets. The state-of-the-art factory was originally scheduled to open in 2017 with Clarks hoping to make 300,000 pairs of made-in-England desert boots a year at the facility, and create up to 80 jobs. However, the opening was delayed and the factory only started production in summer 2018.
In recent news, Clarks made the decision not to reopen a ”meaningful" number of its 347 UK store estate once the government-mandated lockdown ended. As part of the “normal review” the retailer decided not to renew the leases on a small number of stores as they expired in May 2020. An exact number and locations weren’t announced. It had already closed 56 stores in 2018/19. In May 2020, Clarks announced 900 roles were going globally with 108 of those redundancies at its HQ in Street, Somerset.
Left - Scooter Speed Kid Black Leather - £48
Clarks is now under the leadership of Chief Executive Giorgio Presca, who joined in March 2019, six months after Mike Shearwood stepped down. Presca has more than 20 years' of experience in managing and developing global premium brands, previously leading Golden Goose Deluxe Brand, and was chief executive at Italian footwear brand Geox between 2012-2016, which is more relevant to Clarks’ market. Presca has also worked at Diesel, VF Corp, Citizens of Humanity, Levi Strauss & Co. and Lotto.
The vast majority of parents wouldn’t have bought any school shoes between March and August this year. That would mean a huge demand in one go for new school shoes. Currently, online, Clarks’ children’s shoes - boys and girls - range in price from £36-£58. This is often more than what parents would spend on shoes for themselves. They are willing to pay more for a pair they feel with last.
When you consider young children’s clothing and shoes don’t include any VAT - everything under the maximum size an average child will be on their 14th birthday - then the margins are big.
Clarks has had a difficult few years and has become somewhat rudderless with a lack of direction and leadership. The expensive factory debacle and the distraction of Shearwood’s tribunal would have had an effect. Clarks doesn’t include a breakdown of its children’s shoes within its figures, but it is no doubt considerable. Over 70% of Clarks’ turnover is from the UK and ROI and much of this will be the school market. With not much recent innovation in its adult ranges, the children’s shoe sector will be incredibly important to them and this will be make or break time. Without this back to school boost Clarks could be in serious trouble and they’ll be praying they all stay there wearing out those new shoes.
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You know it’s been a crazy year when you’re over excited about booking a short trip to North Wales. Yes, we all know, now, that it’s the little things that make life great, but, whether your staycationing or not, you’ll need some new clothes to embrace the great outdoors and the change in weather.
Here is a preview of the new season:
Brave the outdoor elements in style with the Nobis Martin Parka. The Martin is an easy wardrobe staple with its versatile yet functional design. Featuring a removable down filled hood, the custom Nobis quilted lining and touch of camo.
Party like it’s 1889! Wear your adventure on your sleeve with Lee Jeans' Eagle Sweatshirt. Made with unbrushed fleece, the wash resembles a much-loved vintage piece that's been a little bleached in the sun or been through the wash multiple times.
Created to welcome the colder seasons, these sturdy mocs. were born combining the classy comfort of an iconic boat shoe vamp and upper with the endurance of a thick honey gum commando sole that grants weather-resistance and improves stability and traction with stylish forest green waterproof Millerain fabric.
Look like you've just stepped out of Wes Anderson's Moonrise Kingdom with Burlington's new argyle patterned melange socks. Made from virgin wool with a thick pattern weave, Burlington is made for comfort and is ideal for the modern explorer.