Visited David Morgan warehouse; then got concerning mail from them

[PRW94]

My wife and I, both hat lovers, were in Washington a couple of weeks ago and stopped by the David Morgan warehouse, which we were very close to. I didn’t get anything although I tried on some things (went in with my eye on a Bogart but it really didn’t work for me), but my wife got her second Akubra (a Territory) and a purse. The folks there were quite friendly and nice and helpful.

Fast forward two weeks and we got a mailer from them, some of you may have gotten it too, saying they would not be printing a Spring 2025 catalog and saying the business is at a crossroads and “can’t continue in the format they have successfully followed for 60 years.”

Apparently the lease on their warehouse is up May 31 and the landlord wants to jack the rent up 18%, which they say they can’t handle given their sales, and while they are still negotiating they have started clearing their warehouse.

They also are concerned about tariffs, both announced and potential, but the biggest thing is that “Akubra is revising their business model,” no specifics given, and they are “awaiting clarity“ while holding prices at current levels.

Anyone have any idea what they might mean about Akubra “revising their business model?” I was thinking about an Akubra homburg being my next hat, the cheap beater homburg I got at Christmas along with my Akubra Stylemaster proved to me that I can wear one, but that has disappeared from their website so that is at least one change.

 

[Who?]

That sounds ominous …… and sad.

 

[PRW94]

That sounds ominous …… and sad.

Yeah … it sure sounds like there’s a chance they might not be selling Akubras at some point.

 

[Bushman]

I got this newsletter in just yesterday, and it's disheartening to say the least. I've been a faithful David Morgan shopper for a long time. The thermal layers I'd purchased from them are a deep-freeze necessity, and the possum socks I received from them two Christmases ago are my winter-time go-to. Not to mention the (too) many hats I've purchased from them over the years. I've not been as active on this message board as I used to be, but this was an alarm bell that definitely got me to log on. Heck, the Akubra in my PFP was purchased from David Morgan.

 

[PRW94]

I got this newsletter in just yesterday, and it's disheartening to say the least. I've been a faithful David Morgan shopper for a long time. The thermal layers I'd purchased from them are a deep-freeze necessity, and the possum socks I received from them two Christmases ago are my winter-time go-to. Not to mention the (too) many hats I've purchased from them over the years. I've not been as active on this message board as I used to be, but this was an alarm bell that definitely got me to log on. Heck, the Akubra in my PFP was purchased from David Morgan.

I just hate it because going there and meeting them face to face, they seem like quality folks.

The warehouse/storefront is in kind of an unusual place, it’s like in an office complex where a lot of the other tenants seem to be physicians, tech companies, etc.

 

[Zombie_61]

Well, hell. The first thing that came to my mind was Akubra putting a hold on...well, everything...a year or so ago. Scuttlebutt at the time was that the next generation of whoever was/is running Akubra was taking over, and they weren't quite sure about what they wanted to do or how to do it because their "career visions" didn't include a hatmaking operation or retail stores that sold hats and such, and that they really didn't want to run a hat making company. I can sympathize with that, having been a retail salesman for Goodyear and not wanting to sell tires for 40 years until I reached retirement age, so I'll be casually awaiting announcements of whatever will happen with/to Akubra.

 

[Polyphemus]

In regards to Akubra changing their business model, it seems that since the Tattarang purchase, Akubra looks to be entering into running their own retail stores. Many rural retailers here in Australia have had restrictions placed on how many styles they can stock and some have even been denied stock altogether and are effectively no longer Akubra stockists. Australian independent retailers with web stores aren't allowed to sell them online (officially). Brisbane Hatters, owned by Akubra but selling other brands, was closed and an Akubra brand pop-up store, only selling Akubras, has arisen in its place. The same looks like it might be happening to Strand Hatters in Sydney, also owned by Akubra.

I'm not sure what this means for global distribution but Tattarang are a large private investment company. It wouldn't surprise me if they have the global reach to open up their own brand stores elsewhere in the world. Not sure what to make of this Andrew Forrest guy. He says he wants to keep manufacturing in Australia and increase production. He talks the talk, but it remains to be seen if he'll walk the walk. It's always a bit concerning when a loud-mouthed 1%-er wanders in and starts swinging his gold-plated **** around. The Keir family appear to still be involved in the day-to-day running of the company though, and I've yet to see any drop in quality with recent purchases in the last few months.

As for the homburgs dissapearing from the website, that appears to be an error on the website. The homburg doesn't appear under the 'Collections' drop-down anymore, but it shows up if you follow the 'All Hats' link. Last hat on the first page. Looks like it's just an oversight.