Hilco Brands: Turning Around the Brands that Consumers Love

Creating a brand and making it survive can be a brutal undertaking.  There are plenty of stores and brands that people loved, but fell out of fashion.  Sometimes it is due to a bad economy, sometimes it is due to ruinous competition, or sometimes it is due to poor marketing decisions.  The question really comes down to this: was it a bad concept or a bad set of circumstances.  This is where Hilco Brands comes in.  Hilco is a part of a financial services firm that purchases viable or distressed companies and turns them around.  In the process, they are able to expand or resurrect brands by putting their experienced management team to work on making the portfolio companies more solid and able to grow.

Hilco Brands is a private equity firm located in Northbrook Illinois.  You may not recognize the name Hilco, but you will recognize the names of the companies that they own presently or in the past.  Names such as Polaroid, Halston, The Sharper Image, and Bombay Brands.  These companies make products that clients loved; however, consumers can be fickle and the economy is cyclical.  A nifty item from The Sharper Image might make a great gift, but when disposable income becomes tighter, customers look for cheaper alternatives.

A private equity firm like Hilco can be a perfect fit for rebuilding a brand.  When a company is acquired, Hilco will arrive with new financing, an experienced management team, and a business plan for turnaround or expansion.  These business plans look long term, not quarter to quarter like Wall Street analysts.  This will give management and workers a chance to roll out changes that focus on building the top line (revenues) as much as they do bottom line (income).  Ownership and management are now able to focus on the same issues.  Hilco also has financial professionals who can assist with reorganization and who have a willing army of bankers to service them.  Therefore, when a company is ready to be sold or IPO, Hilco has buttressed the brand with a strong balance sheet and solid business plan.