The readers of our blog are aware of the fact that there is a multitude of ways to increase the success of a business. One may be by way of expanding business operations to new locations. Another is to combine the success of two or more businesses in a merger or acquiring another company altogether. Yet another way is through conversion of a privately run business into one that is publicly traded.
One of the first major steps in converting a private corporation into a public one is through an initial public offering of stock — a process much more commonly known as an IPO. This step is a big one, and one that can be affected positively or negatively by a number of factors. For fashion mogul Tory Burch, it could be her relationship with her ex that actually hinders the successful launch of an IPO, and a step that would make her and her ex both billionaires.
The success of Tory’s fashion line was built during their marriage, which is why both Tory and her ex have a sizable share in the still-private corporation Tory Burch LLC. After several sales to other investors, as it stands both Tory and her ex own a 28.3 percent share in the company that currently has revenues of approximately $500 million with projections of $800 million and retail locations across the world. According to financial experts, this company could be worth billions if it were to become public.
One issue is that her ex not only has a large stake in the company, but is currently at the other end of a business dispute that could put a wrench in any IPO. This dispute is between Tory, her ex and his new girlfriend. The girlfriend had opened her own clothing store – one with wares that looked strikingly similar to the ones in Tory’s line. As with every case, there are two sides to the story. She claims that the girlfriend’s fashion line is a “knockoff brand,” while he claims that she has interfered with the success of the girlfriend’s shop and hampered his attempts to sell some of his stock in their own company.
Source: Forbes, “Why Tory Burch Should Be Fashion’s Next Billionaire (And How Her Ex Could Stop Her),” Clare O’Connor, Nov. 26, 2012