Why You Should Take Advantage of Private Equity Investors
Summary
Still, private equity isnt for everyone, especially if your goal is to build a long-term independent business; most significant investments lead to an eventual outright sale (or public offering). The company, based in Newport Beach, California, was having problems with some distribution abroad: Its makeup was sold by three British retailers, with 70 percent of sales at Boots, but Urban Decay CEO Tim Warner wasnt happy with how the drugstore was displaying the products. In 2008, Catterton invested in Restoration Hardware, a home-furnishings retailer that was struggling to grow profitably in the face of mounting competition from the likes of Pottery Barn and West Elm. The firm spent the next four years shutting down Restoration Hardware stores, shrinking the companys retail footprint from 110 locations to just over 80, abandoning smaller, mall-based outlets. Instead, it focused on what managing partner Michael Chu calls "gallery stores," which are larger, multistory spaces that emphasize the airy, aspirational lifestyle Restoration Hardware customers buy into as they shop for its tastefully minimalist couches and throw pillows.
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