Dive Brief:
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Bain Capital, a private equity firm that has had mixed results backing retailers, agreed to buy half of Toms Shoes, the company said Wednesday.
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Founder and “Shoe Giver in Chief” (his real title) Blake Mycoskie built a retail shoe empire with a popular and innovative philanthropic twist of "buy one, give one," which has influenced other retailers like Warby Parker. He says the sale will help the company's management and growth.
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The deal reportedly has Toms valued at $625 million, including debt. Bain pledged to continue with the Toms philanthropic priorities, but critics questioned the move.
Dive Insight:
While critics are questioning this sale to Bain Capital, it’s unlikely that the investment firm will mess too much with Toms’s philanthropy model, if for no other reason than it is a major part of the retailer’s success. Still, any time a visionary founder relinquishes control, changes can ensue.