Arrow Sewing Has Been Acquired
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Arrow sewing has been acquired by a private equity firm. TEK Holdings, LLC, which is owned by WILsquare Capitol, acquired the company at the beginning of 2024. Other categories in their portfolio include branded workstations, storage solutions, and accessories designed for quilting and sewing.
What is Private Equity?
Private: A private company is one that is not publicly traded on the stock exchange. So, a private equity company works with private companies.
Equity: Business equity is the amount of money left over for shareholders if a company liquidates assets and pays off all its debts. To summarize, a private equity firms invest in companies in exchange for a stake in the business.
What Sewing Related Companies Does WILsquare Capitol Have?
- TekBrands
- June Tailor
- Arrow Sewing
The rest of the companies in their portfolio aren’t sewing related at all.
The randomness of WILsquare portfolio is problematic because it would be impossible for any business to have expertise in so many different industries.
Arrow needs extra capitol in order to implement new ideas.
There is never a problem with getting money to fund an idea. However, a problem arises when a private equity firm is used to raise capitol. It becomes a problem because private equity companies get their money from investors and bank loans. This money then becomes debt Arrow has to pay. In most cases, debt swallows the company and forces them out of business.
Likewise, most shareholders have little to no knowledge about companies in their portfolios. They only see what will make the company more profitable. More often than not, this issue drives away customers and ultimately causes the company to close. But, only time will tell what will happen with Arrow as a result of selling a good portion of its business to a private equity firm.
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