Target-ing the Preppy; No Clowning Around, Cirque du Soleil Goes to Private Equity Firm; Former Fed Chief Wants Overhaul, But Does Anybody Care?

I guess that means it was a success…

Image courtesy of cuteimage/FreeDigitalPhotos.net

Image courtesy of cuteimage/FreeDigitalPhotos.net

Things are looking up for Lilly Pulitizer (did they ever look down?) as the line of 250 pieces it made for Target  – from dresses to beach chairs – nearly sold out within hours, with many crowing the moment as “Preppy Black Friday.” Just darling. In fact, the line of merchandise was so successful that 16,000 of the line’s items even made it onto eBay, priced much much higher than Target’s prices. Target’s website nearly crashed because of the traffic caused by the hype for the Lilly Pulitzer merchandise. Good thing Target already learned its lesson the hard way back in 2011, when it launched a line with Missoni, which did, in fact, cause the site to crash. This time, however, Target just made the site inaccessible for 15 minutes to deal with the onslaught. Much to the annoyance and disappointment of many, Target has no plans to restock the line since that might make the 250 items not as precious. No doubt the opportunists selling the marked up merchandise on eBay aren’t too sad about this decision. You know who’s not disappointed, or even annoyed? Oxford Industries, that’s who. Parent company to Lilly Pulitzer, Oxford Industries’ stock surged 9% because of all the success and excitement surrounding the Lilly Pulitzer/Target merchandise.

Send in the clowns…

Image courtesy of vectorolie/FreeDigitalPhotos.net

Image courtesy of vectorolie/FreeDigitalPhotos.net

There’s no clowning around at TPG, the private equity firm that just picked up a majority stake in the world-famous circus sensation, Cirque du Soleil. Its founder, Guy Laliberté, has decided to take on new creative challenges instead of grooming his five children to take over the family biz. TPG has already helped companies, including J. Crew, Neiman Marcus and Ducati. So it’s safe to assume they know a thing or two about how to grow a brand. Quebec pension fund manager the Caisse de depot, and Chinese investment firm, Fosum, will take on minority stakes in the entertainment company. While the price for the deal is being kept under wraps, some analysts have pegged the deal between $1.5 and $2 billion. Not bad for a guy who started a traveling show with a bunch of street performers back in 1984. Laliberté will stay on with the company and its 1,400 employees to continue to offer strategic and creative advice. It pays for him to do so as he’ll still be left with a 10% stake.  Cirque du Soleil sells 11 million tickets a year and has been seen by 160 million people in 330 cities and 48 countries.

I said Volcker! Not Vulcan!

Image courtesy of sdmania/FreeDigitalPhotos.net

Image courtesy of sdmania/FreeDigitalPhotos.net

Way harsh words from former Federal Reserve chief Paul Volcker who slammed the current U.S financial regulatory system during a speech in Washington, D.C. The former chief and close financial advisor to President Obama said if we don’t revamp the current system, it will only “…make us more vulnerable to the next financial crisis.” Mr. Volcker wants a complete overhaul of a system he says was developed piecemeal over the last 150 years in response to fiscal emergencies. He says the Dodd-Frank financial reform act of 2010 is not enough to head off an even greater economic disaster and wants to see a smoother, streamlined regulatory system instead of the current one we have in place which he thinks is “…highly fragmented, outdated and ineffective.” Ouch. In his fiscal eden, banks and other select Wall Street firms would be centralized. Then he’d merge the SEC and CFTC into one big happy family. In case you haven’t guessed it by now, plenty of people on Wall Street don’t seem to care for what the former fed chief had to say.

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