According to a report on financial blog Betaville, two of the biggest luxury powerhouses may be joining forces. The site yesterday wrote that American brand Coach is considering merging with British fashion house Burberry.
Coach has supposedly been working with banking advisory firm Evercore for several weeks on a deal, the website said. While earlier this year, *The Financial Times * reported that Burberry had spoken with advisors regarding preparing a potential bid. Following Betaville’s report of the alleged upcoming sale, Burberry’s shares rose 4.5%.
‘Burberry could indeed be seen as the British Coach, as we as analysts had pointed out years ago,’ Luca Solca, head of luxury goods at Exane BNP Paribas told Business of Fashion. However, Solca reckoned the move would not be beneficial for either brand.
‘A merger of Coach and Burberry would primarily be a merger of problems. History has shown that mergers don't obviously help in regaining brand traction and desirability,’ Solca said. The speculation continues...