SANTA MONICA, CA—Will Toms Shoes be the next big retailer? And will the world be a better place as a result?
Bain Capital LLC has acquired a 50 percent stake in the footwear company, with plans to grow both the business and its charitable giving, says Reuters.
The company was created in 2006 when Founder and Chief Shoe Giver (yes, that's his title) Blake Mycoskie traveled to Argentina and met children who literally had no shoes at all. The company matches every pair of shoes sold with a pair given to a child in need. (In 2011, this was extended to eyewear.) To date, according to Toms' website, the company has donated 10 million pairs of shoes in over 60 countries, and some 150,000 pairs of eyeglasses. Toms also sells fair-trade organic coffee, donating a week of clean water to a person in need with each bag sold.
“This partnership will enable Toms to grow faster and give to more people in more ways than we could otherwise,” Mycoskie said in a statement to Bloomberg News.
Bain's current portfolio includes Bob's Discount Furniture, Burlington Stores, Guitar Center, Michaels and Toys R Us. This deal adds footwear to the portfolio. And the cash infusion will help the company grow, though no numbers were revealed.
But what many may wonder is just how quickly the chain can expand – and what will happen when at some point doing good conflicts with doing well.
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