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Tom Kartsotis Builds With Bedrock
Nostalgically named for a World War II-era shoe polish, Shinola is the latest brand to capitalize on the burgeoning appeal of made in America fashion products. Launched this month via an e-commerce site, and with flagships set to open in New York and Detroit in June, Shinola is selling retro-inspired watches, bicycles, leather accessories and stationary goods all made and assembled in its own Detroit production center, or elsewhere in the U.S.
While the name may be quaint, Shinola is a state-of-the-art operation, situated in a custom 30,000-square-foot facility within the historic Argonaut Building in Detroit that can now turn out 500,000 high-quality watches a year. The ambitious start-up is the latest venture from Tom Kartsotis, the founder of watch giant Fossil Inc., who retired as chairman of that company in 2010 and has since dedicated himself to building up his private equity and brand management firm, Bedrock Manufacturing Co., based in Plano, Texas.
In addition to launching Shinola, Kartsotis and Bedrock have since 2012 acquired the Seattle-based outdoor brand Filson, bought controlling stakes in the surf brands Original Jams and Mollusk Surf Shop and made minority investments in accessories maker Clare Vivier and designer label Marissa Webb. Earlier in 2011, Bedrock acquired a minority stake in retailer Steven Alan.
"Bedrock Manufacturing is predicated on the concept of manufacturing in America. Whether it's bicycles and watches in Detroit, board shorts in Honolulu, outerwear and accessories in Seattle or animation in Dallas, it's about imagination, creating jobs and making consumer products that we really love," said Kartsotis, who also sits on the boards of Simon Equity Partners and Burton Snowboards.
Heath Carr, chief executive officer of Bedrock, said the company takes an activist approach to its investments. "We are similar to a private equity firm except we don't have any passive investments. We get deeply involved in helping to operate our brands and developing multiyear growth strategies and brand positionings," he said.
That strategy is taking shape at Filson, acquired by Bedrock in June from private equity firm Brentwood Associates. The company has invested in a new...