Dreams might come true!
Richard ‘Wooly’ Woolcott, founder and onetime CEO of Volcom, is rumored to be sniffing around a re-purchase of his former brand. You most certainly are aware of Volcom’s storied history. It, in so many ways, is a microcosm of the entire surf industry and let us recount here and quickly.
The brand was dreamed up by pals Woolcott and Tucker Hall whilst on a snowboard trip to Tahoe in 1991 and started out of a garage later that year. Its iconic “stone” logo was soon must have as surf’s zeitgeist was reaching its very height. Nobody smelled the 20+ year apocalypse just around the corner and Volcom Inc. was floated on NASDAQ raising a whopping $89 million in its initial public offering. Six years later, the French multinational PPR (now Kering) launched a friendly takeover, valuing the company at $608 million dollars.
And that is where things are today. Oh of course the 20+ year apocalypse began somewhere in there and Kering has been rumored to be underwhelmed by Volcom’s performance but c’est la vie, as they say, until today.
For today it is rumored that the boys, led by Wooly, are back and in a buying mood.
“Why?” you ask.
Well, my source tells it that Wooly et. al. were buoyed by Billabong’s low low low price sale to Boardriders, which came in at around one Australian dollar per share. By way of comparison, PPR (Kering) bought its friendly takeover Volcom stock at $24 American dollars per share.
If Wooly et. al. could convince Kering that Volcom is a one dollar dog and it would be best for everyone to jettison then voila, as they say. The original crew would have their baby back for 1/24th of the price.
A good deal by any measure.
Have you ever sold anything you later regretted? I don’t mean to go on a tangent here but as a kid I had a secondhand pair of Nike Air Pressures and I thought it was the coolest shoe ever. Then they got lost but I found a brand new pair on ebay last year so bought them and I was so excited when they came but I realized they don’t look good with anything and now I am sad.
Time for more Percocet.