Roots Canada is changing hands from the men who founded the iconic brand to Searchlight Capital Partners LP.
Michael Budman and Don Green, both in their 60’s, opened their first store in 1973, and expanded to a current total of 220 across Canad, the United States and Asia.
After decades of making the big decisions, they’ve decided to step back and allow another entity to take over and carry it into the next portion of the 21st century. It’s hoped that this change will help bring Roots into the European market, and offer effective competition in a tight market.
Roots has provided clothes for Canadian Olympic athletes, and at one time had 150 stores in Canada, but has had to scale back to 115 as more effort has been focused on their online retail option.
Many are asking the co-founders why they didn’t hand the reins over to younger members of their family.
Budman revealed that he has two children, while Green has three, but they both knew that they would never pass the business on to their offspring.
Does that make sense? Do you think Roots Canada would find greater success if it remained within the family? Are businesses that are passed from one generation to the other likely to be more successful in the long run, or does it increase the chances of failure?
Are you planning on passing your “empire” on to your children?