Rumours that Tom Ford is looking to sell his namesake brand surfaced in July when Bloomberg said the fashion and beauty business had appointed Goldman Sachs to find a buyer.
Speculation is rife that Estée Lauder may be the main contender to buy the business as it already owns the license for Tom Ford Beauty. Tom Ford, the company, currently designs and retails men’s and women’s wear, accessories, fragrances, beauty and eyewear. Estée Lauder, which does not directly operate any fashion companies, could license out the ready-to-wear if it were to acquire the business.
The Wall Street Journal said an Estée Lauder buyout could be valued at a 3 billion dollar deal, as the cosmetic giant hopes to regain the profit it lost after its market value tumbled by 26 percent this year.
Sales of Tom Ford Beauty soared after the pandemic, with double-digit growth in its most recent third quarter.
Last season Tom Ford cancelled its runway presentation, citing Covid-19 issues. The brand is expected to close New York Fashion Week on 14 September.