Toms Shoes, Pioneer in Mixing Philanthropy and Sales, Is on the Block

Toms, the for-profit footwear manufacturer noted for integrating philanthropy into its business model by donating a pair of shoes to a needy person for every one it sells, is on the market and could fetch as much as $600-million, according to the Financial Times.

The firm has reportedly hired an investment bank to explore sales options. A Toms executive, speaking on condition of anonymity, told The New York Times that the founder and chief executive of the company, Blake Mycoskie, would retain a key role in the company and that the sale is aimed at securing investment to broaden its “one for one” approach to more products.

A pioneer in ethical fashion, Toms has given away more than 10 million pairs of shoes in 59 developing countries and has already expanded to sales of eyeglasses and coffee. The company has drawn fire from some academics and activists, who say it could do more to alleviate poverty by creating jobs in countries where it makes donations. Toms recently unveiled plans for a plant in Haiti, and Mr. Mycoskie has said that by the end of 2015 a third of its shoes will be manufactured in developing countries.

Listen to a Chronicle of Philanthropy podcast about Toms Shoes’ approach to philanthropy and social entrepreneurship.