{"id":5423,"date":"2015-12-09T19:23:33","date_gmt":"2015-12-10T00:23:33","guid":{"rendered":"https:\/\/digital.hbs.edu\/platform-rctom\/submission\/back-from-the-brink-the-story-of-an-iconic-american-shoe-company\/"},"modified":"2015-12-09T19:23:33","modified_gmt":"2015-12-10T00:23:33","slug":"the-rebirth-of-an-iconic-american-manufacturer","status":"publish","type":"hck-submission","link":"https:\/\/d3.harvard.edu\/platform-rctom\/submission\/the-rebirth-of-an-iconic-american-manufacturer\/","title":{"rendered":"The rebirth of an iconic American manufacturer"},"content":{"rendered":"

History<\/strong><\/p>\n

Founded in 1922 in Belgium, Wisconsin, Allen Edmonds (AE) is a shoe company rooted in American tradition. The shoes are a direct product of the Midwestern values that define the company – hard work,\u00a0humility, honesty and trust. With an emphasis on hand crafting, traditional design and premium products Allen Edmonds has weathered the Great Recession and WWII and has stood as a symbol of American longevity. In fact, they have been the shoes of choice for Presidents Reagan, George HW\u00a0Bush, Bill Clinton and George W. Bush on their respective inaugurations.<\/p>\n

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The Problem<\/strong><\/p>\n

While the company withstood economic downturns in the past, the financial\u00a0crisis of the late 2000s pushed AE to the brink. The company lost\u00a0significant\u00a0market share and revenues from 2007 to 2009 sank from $94 million to $72 million. While the financial crisis exacerbated the decline in sales, it wasn\u2019t the root\u00a0cause. AE moved away from its core\u00a0identity and lost touch with its core customer. Giving into pressure from\u00a0distributors, it spurned its traditional American designs for European fast\u00a0fashion designs. The loyal customers were not thrilled as this muddied the brand\u2019s appeal and product quality.<\/p>\n

AE was in desperate need of new management.\u00a0The help came in the form of Paul Grangaard, who had joined the board in 2006 when his private equity firm Goldner Hawn Johnson and Morrison acquired AE.\u00a0 Grangaard became CEO in 2008.<\/p>\n

The Business Model<\/strong><\/p>\n

Grangaard wanted to\u00a0reestablish AE as the great\u00a0American shoe company. He had to recapture the loyal customers while expanding to a younger fashion forward customer. At its core, AE would need\u00a0to\u00a0reestablish itself as the the premium men\u2019s shoe company rooted in quality American manufacturing.<\/p>\n