Subject category:
Entrepreneurship
Published by:
Wits Business School - University of the Witwatersrand
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https://casecent.re/p/20601
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Abstract
In the nine years since its inception, Paul Simon, founder and chief executive of Young Designers Emporium (YDE), had grown his vision of providing cutting-edge fashion and lifestyle products created by hopeful young South African designers, into a successful chain of ten stores in South Africa''s premier shopping malls. Having started with a 10,000 rand loan from his father, and his mother''s retirement policy as surety, Simon had trusted his instincts that the reward from his kibbutz-style operation would be greater than the risks. Now, at the end of 2003, with a staff complement of around 250, turnover in excess of 120 million rand a year, and more than 80 designers and suppliers, Simon looked at his creation and wondered whether YDE had remained true to its goal of being affordable and accessible to its target market. Truworths, a leading fashion retailer with 257 stores in South Africa and 14 franchise operations in Africa and the Middle East, was offering to purchase 75% of his company, thereby providing the credit facilities that YDE needed to grow. Simon needed to decide whether closing this deal was really the answer to unleashing YDE''s true potential.
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Abstract
In the nine years since its inception, Paul Simon, founder and chief executive of Young Designers Emporium (YDE), had grown his vision of providing cutting-edge fashion and lifestyle products created by hopeful young South African designers, into a successful chain of ten stores in South Africa''s premier shopping malls. Having started with a 10,000 rand loan from his father, and his mother''s retirement policy as surety, Simon had trusted his instincts that the reward from his kibbutz-style operation would be greater than the risks. Now, at the end of 2003, with a staff complement of around 250, turnover in excess of 120 million rand a year, and more than 80 designers and suppliers, Simon looked at his creation and wondered whether YDE had remained true to its goal of being affordable and accessible to its target market. Truworths, a leading fashion retailer with 257 stores in South Africa and 14 franchise operations in Africa and the Middle East, was offering to purchase 75% of his company, thereby providing the credit facilities that YDE needed to grow. Simon needed to decide whether closing this deal was really the answer to unleashing YDE''s true potential.