NEW YORK–The sale of Croscill to Patriarch Partners by the Kahn family, which closed yesterday, is the direct result of two very strong factors: a significant drop in Croscill’s sales volume due to changes at retail and the premature death of company president David Kahn in 2005.
Interviews with Croscill executives confirmed that each factor played a critical role in ending the family’s three-generation ownership of the textiles company. They also said that Patriarch would give the company a strong foundation for the future.
Speaking with HFN this morning, Carl Legreca, president, and Tony Cassella, chief financial officer, both of Croscill, said Patriarch Partners is making a “strong, long-term commitment” to the company.
While both executives said Croscill is in good financial health, they also acknowledged that the company took major hits from the loss of business in recent years from three major customers due to changes in the marketplace: J.C. Penney’s decision to concentrate more on promotional bedding and house brands, May Department Stores Co.’s acquisition by Federated Department Stores and the recent liquidation of Linens ’n Things.
At its peak, Croscill did nearly $300 million in annual sales, although its volume is speculated to be significantly smaller than that now.