The Business of Fashion
Agenda-setting intelligence, analysis and advice for the global fashion community.
Agenda-setting intelligence, analysis and advice for the global fashion community.
LVMH signed a deal to sell a majority stake in the parent company of its cruise retail business to a group of investors led by Florida property developer Jim Gissy, but will remain an “important minority shareholder” in the new entity, the luxury group said on Friday.
“The new investors are strategic partners in the vacation retail space with a culture of innovation and a growth mindset,” LVMH said in a statement.
The deal to sell the majority stake in Cruise Line Holdings Co, the parent company of the Starboard & Onboard Cruise Services businesses, is expected to be concluded in the coming days. Financial details were not provided.
Starboard CEO Lisa Bauer, recruited by LVMH for the job in 2019, will continue to lead the business, which will be expanded from cruise ships to vacation retail spots on land.
ADVERTISEMENT
Starboard, which is based in Miami, sells handbags, jewellery and beauty products on dozens of ships belonging to companies including Carnival Cruise Line, Royal Caribbean and Holland America.
LVMH does not break down sales for the business, part of its selective retailing activity, which also manages beauty chain Sephora and travel retail business DFS.
Gissy is executive vice president of Florida time share company Westgate resorts.
By Sudip Kar-Gupta, Piotr Lipinski and Mimosa Spencer
Learn more:
Facing a Shortage of Luxury Artisans, LVMH Seeks Apprentices in the US
The world’s largest luxury company is facing a worker shortage that threatens to curb its production of sought-after handbags, shoes and jewellery, underscoring the broader industry’s challenge to balance strong demand for high-end, handmade goods with fading interest in craftsmanship as a career.
LVMH is part of a group of investors who, together, hold a minority interest in The Business of Fashion. All investors have signed shareholders’ documentation guaranteeing BoF’s complete editorial independence.
Prices are up, quality is down and social media has made it plain for all to see, writes Eugene Rabkin.
The Swiss watch sector’s slide appears to be more pronounced than the wider luxury slowdown, but industry insiders and analysts urge perspective.
The LVMH-linked firm is betting its $545 million stake in the Italian shoemaker will yield the double-digit returns private equity typically seeks.
The Coach owner’s results will provide another opportunity to stick up for its acquisition of rival Capri. And the Met Gala will do its best to ignore the TikTok ban and labour strife at Conde Nast.