I just wanted to update everyone on what was posted about FORM Athletics loosing K-Swiss the money they claimed…
Although some numbers are correct, K-Swiss blaming FORM for their losses is no fault of anyone at FORM Athletics (Past, present or future).
If you take a look at what K-Swiss has done in the past 6 years you will see that the company alone has gone from a $500 million dollar company to a $200 million dollar company. FORM Athletics was purchased in July of 2010 and K-Swiss took over operations and development shortly afterwards. In the time that FORM was brought on they actually had increased their sales with a combination of FORM, K-Swiss Tubes, Kenny Powers and a recent “Young” marketing plan. However, their poor decisions, lack of direction, refusal to change and poor business management led to a loss across the board. Not to mention over investment in avenues that did not result in a good return on investment.
So where do the numbers come from?
FORM was a “Division” of K-Swiss linked to other Action Sports lines at different levels of development and K-Swiss has bundled all of these projects into one. Since FORM was the only operating portion of that Division they were blamed for the loss at the end of the Quarter. However, others lines were in a stage that had not hit the market yet which means money was spent, but they have not begun sales (NO PROFIT!).
Regardless, the whole company alone lost many more millions than their Action Sports division. In fact this division was one of their better divisions aside from what they are known for… Tennis.
FORM was blamed for losses that realistically had nothing to do with the brand, they only followed the trend of the parent company. In my opinion, K-Swiss is trying to slander the name of the business before the eventual buy-back from the original owners because they know that without K-Swiss in the picture, FORM will be the success that it WOULD have been without them.
Please feel free to contact me if you have any more detailed questions.
Marc Wilson
Owner – Derailed Industries
[email protected]
http://www.derailedindustries.com/
