Jeff Harbaugh just wrote up his analysis of the most recent Zumiez quarterly report but the part of his column that has everyone talking is something he mentioned about Zumiez purchasing 14.3 percent of an unnamed apparel and hardgood manufacturer.
On May 11th, Zumiez bought a 14.3% interest in a manufacturer of apparel and hard goods for $2 million. I emailed Zumiez asking for more details but they aren’t disclosing any, which is what I expected. Zumiez has the right to sell its interest back any time between the fifth and the seventh anniversary of the investment. And the company they invested in has an option to buy their stock back on or after the seventh anniversary of the initial investment.
And it makes us wonder: what brand is so important to Zumiez’s that the core mall retailer was willing to pay $2 million to keep them in business. If you have any ideas, please leave them in the comments
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[Link: Jeff Harbaugh’s Market Watch]
Editors,
Careful there. I didn’t say that they did it to keep them in business. I said that was a one possibility, but I have no absolutely no evidence that’s the case. There are probably a dozen other explanations, none of which have I thought of. But, wow, it sure is interesting.
Jeff Harbaugh
Anyone know if it’s a SoCal brand?
mmmmm…Black Box….you heard it here first.
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