Stollenwerk and some partners bought Allen-Edmonds in 1980 from descendents of the founders. Later on, Stollenwerk bought out his partners and built the brand into one recognized around the world.
Unlike his competitors in the footwear industry, Stollenwerk has kept production in the U.S. Allen-Edmonds employs about 550 people in Wisconsin and Maine and makes more than 500,000 pairs of men’s shoes a year. Thanks to the introduction of lean manufacturing and cell concepts, the company can make a pair in seven hours. Shoes are made to order, with the inventory of finished products kept very low.
The shoes are handcrafted from imported leather and can sell for more than $300 a pair. During his tenure, Stollenwerk has seen a decline in the number of independent shoe stores interested in carrying the line, and his distribution channels have become limited. As a result, the company has opened a chain of retail stores that carry not only shoes but also upscale accessories. Sales are about $100 million annually.
As he reached his mid-60s, Stollenwerk knew the company would need to invest in even more stores – at about $1 million each – to continue to grow. That meant “I would have to go to a bank and borrow a considerable amount of money,” he said.
He had done that in the past, and the idea of managing it in the future did not appeal to him. He has children, but none is interested in taking over the company, so his mind turned to other options.