In a slightly strange bit of business news, relatively fledgling menswear label Todd Snyder is being acquired by teen titan retailer American Eagle for a total of $11 million, according to The New York Times. The move is part of an effort by American Eagle to shed the wack label it has become known for over the years and break into an older customer base. Its current strategy of trying to move fast enough to compete with Zara and H&M while offering big discounts hasn't set AE up for the long run. Thankfully, Todd Snyder couldn't be further away from that and still retains AE's Americana look and feel.
The acquisition and added resources will expand the Todd Snyder label, bringing the brand its first independent store, a flagship in New York City, somewhere down the line. Snyder himself will also consult with AE to help make its offerings more appealing to customers other than children. But the major aspect of the deal is one you probably haven't heard about. Todd Snyder also has a college-themed collection called Tailgate that he started in 1997 with his father. It's only store is in Iowa City at the University of Iowa where it sells licensed college sports apparel that taps into the heritage and history of the university. AE sees this as big business in the future and looks to bring the Tailgate collection to colleges and universities across the country. If AE can tap the market right, it may have made an incredibly sound investment here.
