He was wrong!
by John Curnow, Editor, Sail-World AUS 24 Jun 2018 15:00 PDT
Henri Lloyd partners with the J70 Europeans 2018 © J70 Class
It wasn't next week at all. It took two weeks for the whole picture to become clear. From back in The Pink Panther, which was two weeks ago, our 'well-placed source' had this to say about apparel manufacturer, Henri Lloyd. "...put it this way, next week is a new week, and there's a 90% chance all will be OK and become clear." Right. So he's off the Christmas Card List, then...
Sweden's Alligro Group bought the brand and certain assets (jettisoning a lot of the issues along the way), and will leave management to get on with the programme. A lot of that is ensuring the quality name earned over years in the game stays intact.
Magnus Liljeblad commented, "We will heavily invest in the marine clothing segment and our aim is to be the largest supplier on the market. That includes all markets. It's a little bit too soon to fully talk about our exciting vision for Henri Lloyd. We want to make a total turnaround with the brand, which is well known and respected globally, but has not been as effective as it might have been in recent years."
"We will put major resources into product development and a relaunch, but there will be no news on this commitment until next year." Expect short runs and even shorter turnarounds to be a part of that mix from the group's Polish factory. And yes, it does help when the group's Founder, Hans Eckerström, is a passionate sailor. He is quoted as commenting, "Henri Lloyd is a brand that has always held a special place in my heart. I'm committed to carry the heritage of the brand further and invest in it to reach its full potential."
OK. So seeing as we were waxing on about apparel, it seems pertinent that we mention that the Winter Solstice has passed. Yippee! Of course, depending on where you are, and the conditions you're experiencing at the time, you will still need the correct gear. Do see Musto, Zhik, Gul, and Rooster if you need to find the appropriate item for your type of sailing, which can be anything from Southern Ocean to shorts and jacket, gloves to sea boots.
You know, all of that raises the spectre of Private Equity firms. Many bought marine companies in the noughties; some caved in years later and took what they could to get out, whilst others pushed on, only to capitulate later.
Good news recently, as it would appear Bavaria could well be close to gaining the support (i.e. coin) it needs to crack on. I would not be surprised to see some sort of announcement sooner, rather than later. Perhaps it could even be in the same sort of time frame as our well-placed source's effort from the opening stanza...
There is the distinct air of optimism around. This is backed up by the fact that the company was able to arrange its own shortlist of around 10 investors to pursue. That's a happy tale. Suitors came from the marine world, as well as heavy industry, with the factory's assets and skills appealing to non-marine sectors. Geographically, they came from on the Continent, as well as around the globe.
In terms of suitability, look at it a bit like a can of house brand baked beans on the supermarket shelf. Supermarkets are not in the business of making factories. Rather, they go to an existing manufacturer with a spec, and say deliver this on these days for this price. Equally, if you needed large fibreglass parts for your business that is not related to marine, why would you not take a serious look at someone with the skills and tools to make them already? By way of example, Premier Composites make a few boats, but the greater world knows them best for all the minarets they make!
Trade sale and vertical integration are other strategies to deploy in a business exit/growth scenario. So you can bet that organisations hitherto classed as competitors, and also suppliers are part of the equation.
And the business also pushes on, with boats on order underway, and finished craft getting on ships to the far reaches of the globe, every day. This is critical, but none of it is really that surprising given Bavaria's order book, especially after Düsseldorf! It really is no wonder that there is more than enough interest in the company as a whole to go around.
Tony Ross, from Bavaria's Australian Distributor, Ensign Ship Brokers, had recently returned form Europe, and we spoke with him before heading off to the USA. "Absolutely there are boats still coming through. They may not be building them in the same volumes as before, nor quite as quickly, but they are being shipped out regularly."
"The first of the new range arrives in Australia in just two weeks time. We will have the new C45 on display at the Sydney International Boat Show. The new C50 and C57 will be here just after the show. These craft are super-impressive, and the finish on them is astounding."
Like me, many will be looking forward to seeing those, and that's not just their owners. "We have a boat arriving into Australia every two weeks from now until October, which accounts for the 11 orders we have. We sold the first C65, and it now lies in Palma, and I was just there with her very happy Australian owner. Unfortunately, we won't be seeing back here anytime soon. Four of these large craft have been sold to date, and deliveries are occurring over the next while."
Right oh - here today there are some gems for you to review. We have information about the Volvo, AC36, the potential for an AC50 cats circuit, Newport to Bermuda, Superyacht Cup in Palma, the sigh of Joshua and Suhali at the start of the Golden Globe Race, 29ers in Perth, 52 Super Series, Mirabaud Video Competition, GC32, Boat Watching Season means it is time to look out for whales, and the Great Barrier Reef Marine Park Authority explains the rules, Quarter Tonners – remember them, albeit they look a bit different now with black sails, North Sails service centre in Palma, 18-footers, Jeanneau will have five yachts on display at the coming up quickly Sydney International Boat Show from August 2-6, could there be a Southern Hemisphere version of the Figaro???, slick tri for Hammo, GC32s, the AST and Kiel Week, and certainly there is much, much more.
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John Curnow, Editor, Sail-World AUS