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Thread: Allen Edmonds Acquired by Famous Footwear's Parent Company

  1. #11
    Varsity Member Shade's Avatar
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    Looks like I'll be upping my shoe game, if they lower theirs.

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    AE has clearly invested a lot of money and time into their US manufacturing plant. Unless the shoes start to be labelled as made somewhere other than the US, I think they quality will be pretty well the same. There wouldn't be a cheaper place in the US to start manufacturing their shoes at the volumes they make. Having said this, I do believe some of their shoes that are labeled as Made in the USA actually start off in the Dominican Republic, or somewhere like that, and then are shipped to their US factory to be finished.

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    Varsity Member CMAc7's Avatar
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    Allen Edmonds Acquired by Famous Footwear's Parent Company

    Quote Originally Posted by dpark View Post
    This is hyper-cynical. What do you care if AE turns to trash in a decade? That was always a possibility. If they make shoes you like with quality you demand and a price you will pay, that should be enough for you to choose them. Why do you care if they'll make quality shoes in the future if they make quality shoes *now*?

    This just feels like brand snobbery to me.
    You mistake quality snobbery for brand snobbery. If you must paint me with a wide brush, quality snob is the one I prefer.



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    Last edited by CMAc7; December 14th, 2016 at 07:12 AM.

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    Varsity Member evanparker's Avatar
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    Quote Originally Posted by Spex View Post
    I think they quality will be pretty well the same.
    mark my words, they will start by using more bonded leathers, and outsourcing more and more to DR, and then to india, and it will just worse and worse and snowball until an AE shoe is equivalent to a florsheim from india.

    it's going to be a really wild horrible ride guys.

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    I am going to take a different route than everyone. AE currently makes shoes in the US and shoes in the DR. AE is a premium shoe name for those used to purchasing shoes from the normal retailers like Macy's, JCP, and others. Since everyone can't afford the Made in US line, they can afford the DR line. The company has the opportunity to sell a premium name at a cheaper price with their Made in DR line. They could keep their Made in US line at the higher price and quality while making more shoes in the DR line to reach more people.

    This would be the Johnston and Murphy route, from what I know about that brand, so we could see AE go that way. Maybe Paul will do another AMA on reddit to answer questions people may have.

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    Varsity Member evanparker's Avatar
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    from http://www.bizjournals.com/stlouis/n...5-million.html


    Caleres has acquired Allen Edmonds, a retailer of men's footwear, from Brentwood Associates for $255 million, the company announced Tuesday.

    The acquisition is being funded through existing cash and the company’s revolving credit agreement. A closing date has not been announced. Caleres said the deal will expand its portfolio and boost its presence in men's footwear.
    Diane Sullivan said Allen Edmonds "is a great strategic fit for our growing men’s business, and it will allow us to rapidly expand our men’s portfolio with a proven winner in the category."
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    Diane Sullivan said Allen Edmonds "is a great strategic fit for our growing men’s… more

    "We understand how special the Allen Edmonds brand is to its current consumers, and we plan to take it forward in a careful and disciplined way. We welcome their extensive knowledge and expertise in the men’s category," Caleres CEO Diane Sullivan said in a statement. “We see tremendous opportunity around Allen Edmonds’ direct-to-consumer business, which represents 75% of current sales. We’re also eager to explore their manufacturing resources, as we continue to focus on our ability to increase our speed to market.”

    Caleres, formerly Brown Shoe Co., is expected to reveal more details on the deal at its fourth quarter earnings call.

    “Allen Edmonds is a great strategic fit for our growing men’s business, and it will allow us to rapidly expand our men’s portfolio with a proven winner in the category. We feel the brand is well positioned for growth and we’re looking forward to working with the team to help make that happen," CFO Ken Hannah said in a statement.

    Wells Fargo Securities served as financial adviser to Caleres in the deal.

    “With nearly a century of heritage and innovation, Allen Edmonds is an ideal fit for Caleres,” said Paul Grangaard, president and CEO of Allen Edmonds, in a statement. “As part of the company’s Brand Portfolio, we’ll be sharing our men’s footwear knowledge and expertise, while simultaneously benefitting from the brand development, materials sourcing, product development and design capabilities inherent in a much larger footwear organization.”

    Clayton-based Caleres reported $34.7 million in profit during the third quarter, up from $34 million during the same quarter last year. Revenue was up 0.5 percent to $732.2 million

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    Quote Originally Posted by ryn View Post
    I think that AE has a loyal following and not much competition in its niche segment of the market. Also they list the number of steps in the manufacturing process. If they change the number, we will know.

    There is not much reason to worry.
    Quote Originally Posted by evanparker View Post
    mark my words, they will start by using more bonded leathers, and outsourcing more and more to DR, and then to india, and it will just worse and worse and snowball until an AE shoe is equivalent to a florsheim from india.

    it's going to be a really wild horrible ride guys.
    Exactly. This story has played out again and again with the same result. In some cases like with Cole Haan, they will continue to try and sell trashy Indian/Chinese shoes for the same price. It's not because AE changed ownership, but it's because of who bought AE. They are a profit driven, mass quantity driven company. It's really all in the article. "Expand" , "brand developing" and "material sourcing". It's very unfortunate they sold it to the highest bidder and not to someone who cares about shoes.---on the bright side this will secure Alden as the only and quintessential USA shoe company. But overall a sad day.
    Last edited by MNJ83; December 14th, 2016 at 07:49 AM.
    You can never have enough shoes

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    Varsity Member armedferret's Avatar
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    guess my timeline for "the next couple pairs" just got bumped. think i'll head to the new clarksburg store on sunday for those liverpools i've been wanting. walnut strands and.......eh, meermin from here out i suppose. :\

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    I wonder if their recrafting operations will also turn into a junk fest clown show. I mean, think about that. You send a pair to be redone and they come back as Chinese shoes, basically.

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    I bet they will start making shoes out of cardboard and feathers.

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