PROENZA SCHOULER ACQUISITION BY CASTANEA PARTNERS
ROBERT BURKE ASSOCIATES WAS HIRED IN APRIL 2015 BY CASTANEA PARTNERS TO ASSESS THE OPPORTUNITY TO ACQUIRE A STAKE IN FASHION BRAND PROENZA SCHOULER.
On June 22, 2015 Castanea announced the acquisition of a minority stake in Proenza Schouler. Following the acquisition, RBA presented the findings of the report to the brand’s founders and designers Jack McCollough and Lazaro Hernandez and their teams. Under the guidance of interim CEO Ron Frasch, the team has implemented a number of recommendations included in the RBA report.
As part of the due diligence process, RBA performed a thorough analysis of the Proenza Schouler business in order to make an informed assessment and set of recommendations regarding the brand’s growth opportunities.
This assessment included:
Analyses of retail and wholesale bookings and sell-through results for ready-to-wear and handbags to determine product strengths and weaknesses; and
An analysis of the classifications, price ranges and distribution points of Proenza Schouler as compared to its competitors in order to determine areas of opportunity for PS based on its strengths and white space within the market.
A significant portion of the due diligence process included interviews that RBA conducted with executives and buyers from key domestic and international wholesale accounts. The feedback gathered from these interviews was considered in conjunction with the quantitative analysis in order to make recommendations that helped inform the acquisition.