What happened to Allen Edmonds?

[Deleted member 16736]

I know they got bought out again recently, but they seem to be making big changes that in my opinion are for the worse. Many of their most popular models have been revamped/modernized (Leeds, Dundee, etc.) in a bad way to my eye anyway, and now it appears they've dropped shell cordovan. Allen Edmonds is one of the last remaining traditional men's shoemakers, and they seem to be turning their back on their heritage and their customers and trying to be a hipster brand. Can anybody shed light on what's going on?

 

[Richard Warren]

Some customers who react negatively to any change took to the Internet and bad mouthed them, driving them to take desperate measures and make more radical changes. An unfortunate negative feedback loop that perhaps we could break.

The world is changing in ways that to many people are unfortunate, and there's not much point in getting upset with those who are trying to adapt while maintaining some standards.

 

[Deleted member 16736]

Some customers who react negatively to any change took to the Internet and bad mouthed them, driving them to take desperate measures and make more radical changes. An unfortunate negative feedback loop that perhaps we could break.

The world is changing in ways that to many people are unfortunate, and there's not much point in getting upset with those who are trying to adapt while maintaining some standards.

I thought the classics were classic because they were timeless. Is Alden adapting? They're doing fine pumping out the same styles year after year. And why can't AE add new styles without dropping the old ones? They don't have to be all things to all people.

 

[Luis]

Also Stetson making hats for the Hipsters...

Stetson Looks to Hipsters to Move Beyond the Cowboy Hat
http://www.bloomberg.com/news/artic...oks-to-hipsters-to-move-beyond-the-cowboy-hat

 

[Deleted member 16736]

Also Stetson making hats for the Hipsters...

Stetson Looks to Hipsters to Move Beyond the Cowboy Hat
http://www.bloomberg.com/news/artic...oks-to-hipsters-to-move-beyond-the-cowboy-hat

Wow, Stetson doesn't even make their own hats anymore. At least AE makes the shoes themselves.

 

[APP Adrian]

I thought the classics were classic because they were timeless. Is Alden adapting? They're doing fine pumping out the same styles year after year. And why can't AE add new styles without dropping the old ones? They don't have to be all things to all people.

I agree.

Today's fashion is so vain and immodest. The classic shoes like the black cap toe are very stylish and easily repairable. I don't want to buy new shoes frequently and it's a waste of good quality leather =). We need to encourage more people (especially young people) to understand "long-tern" fashion.

Example of long term fashion items:



Black cap toes.


Brown full brogues.


These.

 

[APP Adrian]

Fashion should be long term and not easily replaceable.

This is why I love The Lounge. Here we discuss about classic suits, overcoats, and hats. We want our clothing to last as long as possible.

 

[Luis]

Fashion should be long term and not easily replaceable.

This is why I love The Lounge. Here we discuss about classic suits, overcoats, and hats. We want our clothing to last as long as possible.

Exactly, wardrobe is an investment. Clothes that last many years, natural fabrics. Leather soles. What's the point of buying something if you are going to have to throw it away quick.

 

[Frunobulax]

Wow, Stetson doesn't even make their own hats anymore. At least AE makes the shoes themselves.

Um, not true. While they likely license some production, such as fabric hats and the like, the fur felts are made at the factory in Garland, TX. They produce their own felts, and do all of the manufacturing/finishing there. If you buy a new Stetson, it was produced in Texas.

The company this lady is heading is the licensed name of Stetson, not Hatco. I'm not certain how this interplays with Hatco, Matt Deckard's position, and the Stetson name. However, they certainly make hats in Texas. I've been there.

 

[HudsonHawk]

Fashion should be long term and not easily replaceable.

This is why I love The Lounge. Here we discuss about classic suits, overcoats, and hats. We want our clothing to last as long as possible.

But this is not what manufacturers want. They want people buying their products all the time.

 

[Guttersnipe]

Since 2006, Allen Edmonds has been owned by private equity firms. The previous owner, Goldner Hawn, saw AE as a legacy brand which, with a highly loyal, generational customer base, it held in its portfolio as a stable, cash-producing asset. However, in 2013, AE was bought by Brentwood Associates, who implemented many changes in an attempt to grow the brand and increase profits. As part of that effort, AE started selling many unrelated products (hats, sport coats, etc.) and started doing more fashion-forward/trendy stuff, like distressed finishes, wacky colored laces/stitching, etc. Unfortunately, as part of this initiative, there have been two negative byproducts: the limiting/discontinuation of low volume lines (read: cordovan and specialty designs) and a noticeable drop in quality.

 

[Luis]

But this is not what manufacturers want. They want people buying their products all the time.

Very similar to the pharmaceutical industry. They want you to keep buying....

 

[HudsonHawk]

Very similar to the pharmaceutical industry. They want you to keep buying....

Well, it's not that the shoe industry wants you addicted to buying shoes, it's a simple economic principle at work. They have to appeal to a large cross section of buyers. They cannot sustain their business on the idea of people buying shoes every 40 years.

 

[Fading Fast]

This will only force more buyers Alden's way.

Allen Edmonds - the last several years - and thanks to Guttersnipe I now know why - has given me a headache as they seem to be launching and canceling models left and right. Since most Private Equity Investment look to "cash out" (sell the company for a profit) in five years (not a rule, but a normal target), my guess is Allen Edmonds must not be doing that well which is when desperation sets in and many things are tried ("pull another lever, throw another switch, something must float this ship").

Legacy brands, traditional brands that want to stay that way almost always need to be owned privately by a family or small group of owners who care about the history, tradition and legacy of the brand - by owners who will sacrifice some profit and certainly market growth to continue being a niche or modest sized company. Rarely can companies like this exist and stay unchanged if they are publicly owned as the pressure to "grow" market share / earnings / revenue / the brand / etc. is too great. That's when they tried to become more "today / trendy / up-to-date / modern / with it" pick your adjective, but they want to grow now, not nurture a mature product.

Coach and Cole Haan are just two examples of old-line companies that made timeless, quality products that, once they were bought by larger companies, became just one more mass producer of trendy stuff.

 

[Bamaboots]

Similar to what happened in the cowboy boot industry. What were always considered to be the 'Big Three' Tony Lama, Justin and Nocona, are all part of Berkshire-Hathaway now. The boots and boot wearers have suffered for it.

 

[ingineer]

Further explanation, Glad i have my elephant boots
http://www.wsj.com/articles/cordovan-shoes-for-men-play-even-harder-to-get-1400881239

 

[Guttersnipe]

Well, it's not that the shoe industry wants you addicted to buying shoes, it's a simple economic principle at work. They have to appeal to a large cross section of buyers. They cannot sustain their business on the idea of people buying shoes every 40 years.

I think what you say above, HudsonHawk, ties in well with changes AE saw when it was purchased by Goldner Hawn. Under their management, AE expanded its distribution and marketed itself more aggressively, but (largely) maintained standards. This translated in lots more sales and profits, and a whole new generation of customers (myself included)...

...but as you say below, Fading Fast, the new direction under Brentwood's ownership is a classic example of brand dilution. What's also regrettable is that they raised their prices, yet their quality has dramatically declined. And just as you say, many consumers (myself included) have turned to Alden as an alternative.

It also seems that Alden does a better job courting newer (read: younger) buyers, while maintaining its standards and old product lines. Here in San Francisco, I see age'd Financial District scions and beard-o hipsters alike wearing Aldens, albeit different models.

This will only force more buyers Alden's way.

Allen Edmonds - the last several years - and thanks to Guttersnipe I now know why - has given me a headache as they seem to be launching and canceling models left and right. Since most Private Equity Investment look to "cash out" (sell the company for a profit) in five years (not a rule, but a normal target), my guess is Allen Edmonds must not be doing that well which is when desperation sets in and many things are tried ("pull another lever, throw another switch, something must float this ship").

Legacy brands, traditional brands that want to stay that way almost always need to be owned privately by a family or small group of owners who care about the history, tradition and legacy of the brand - by owners who will sacrifice some profit and certainly market growth to continue being a niche or modest sized company. Rarely can companies like this exist and stay unchanged if they are publicly owned as the pressure to "grow" market share / earnings / revenue / the brand / etc. is too great. That's when they tried to become more "today / trendy / up-to-date / modern / with it" pick your adjective, but they want to grow now, not nurture a mature product.

Coach and Cole Haan are just two examples of old-line companies that made timeless, quality products that, once they were bought by larger companies, became just one more mass producer of trendy stuff.

 

[Richard Warren]

So, what happened to Allen Edmonds is that some venture capitalists stepped in to try to keep a legacy business going by adapting to market conditions as best as they could. And this is a bad thing?

 

[Bruce Wayne]

I just wish they'd bring back their MTO line& the Neumoks with every colour under the sun.

 

[Guttersnipe]

So, what happened to Allen Edmonds is that some venture capitalists stepped in to try to keep a legacy business going by adapting to market conditions as best as they could. And this is a bad thing?

Kinda, but not really. You've two models at play here. The one used by Alden and Goldner Hawn and the other one, currently used by Brentwood Associates. In the past, within the footwear industry, a model similar to Brentwood's has been used by the management of Johnston & Murphy as well as Florsheim; neither instance worked particularly well. In the broader luxury goods industry, similar strategies have worked with Burberry and Coach. Only time will tell if Allen Edmonds end up just another junky, perpetually marked-down, foreign-made, mall shoe...

...for context, a top-of-the-line pair of Florsheims cost about the same in the 1960s as they do today - in dollars not adjusted for inflation!