Minkoff seeks cash to build handbag biz
Rebecca Minkoff, the New York “bag goddess” and fashion designer, has a new sales pitch.
Minkoff and minority investor TSG Consumer Products are in discussions to raise cash to fuel an aggressive expansion that has seen the company double in size over the past couple of years, according to sources close to the company.
Rebecca and brother Uri Minkoff, who is co-founder and chief executive, are the majority stakeholders of a $100 million-plus business that sees its size as a disadvantage when compared with much larger rivals like Michael Kors and Kate Spade.
Minkoff, whose handbags have been spotted on celebs such as Reese Witherspoon, Hayden Panettiere and Lindsay Lohan, has been hailed as a hot designer but one who lacks the financial wherewithal to take the company to the next level.
The brand has just three of its own stores in the US and two overseas, selling most of its apparel and accessories in some 900 stores and online, according to its Web site.
The company recently retained Gary Herwitz, a consultant known for helping companies navigate their finances. It also hired a new chief financial officer, Steven Speaks, earlier this year.
“Gary is looked at as someone who can help a business become profitable or grow,” said retail consultant Robert Burke.
TSG took a minority stake in the company in 2012. The company has yet to turn a profit, according to sources, although it is getting close this year.
“Rebecca Minkoff is very successful in handbags, but it has been struggling to make money for years,” said a source.
A rep for the company declined to comment.