Birkenstock’s Surprising Transformation from ‘Ugly’ to High Fashion
For decades, Birkenstock was synonymous with ‘ugly’ footwear, associated with hacky sack-playing college kids, vacationing dads, and Haight-Ashbury hippies.
Not even supermodel Kate Moss could rescue them from this sartorial wilderness when she wore a pair in a fashion campaign, only to face widespread mockery.
However, in 2012, this 250-year-old German brand received an unexpected luxury makeover when Celine’s creative director, Phoebe Philo, introduced a fur-lined version at Paris Fashion Week.
A Decade of Upscale Transformations
Vogue hailed Philo’s eccentric footwear as ‘suitably unhinged,’ and it didn’t take long for high-end collaborations to follow, including an extravagant $76,000 pair made from repurposed Hermes Birkin bags.
Fast forward a decade, and Birkenstock’s incredible journey from ‘geek to chic’ culminated with the company’s stock market debut.
Birkenstock’s Stock Market Debut: A Mixed Reception
Birkenstock had eagerly eyed the New York Stock Exchange sale for weeks, with lofty predictions of a valuation reaching up to $11 billion.
However, the first day of trading proved less spectacular, with stocks plummeting 12 percent and a closing market valuation of $7.5 billion.
Nevertheless, this is still a remarkable achievement for a brand that has a history, which DailyMail.com now exclusively reveals, is marked by more significant challenges than the disapproval of fashion snobs.
Uncovering a Dark Family Past
Back in the 1940s in Germany, Carl Birkenstock, who headed the company at the time and was the grandfather of the current Birkenstock family members holding a minority stake, became a member of Adolf Hitler’s Nazi Party.
However, the company clarified that Carl joined ‘under duress and the coercion of repeated verbal and physical attacks by local Nazis.’ He held no significant position within the party, and there is no indication that he or any other family members were involved in Nazi activities or complicit in their persecution of minorities.
Nonetheless, Carl retained a party membership card until the regime’s end in 1945.
From Shoemaker to Global Brand
Birkenstock’s history can be traced back to 1774 when Johan Birkenstock started a humble family cobbling business in Frankfurt.
In the 1880s, they introduced flexible insoles made from cork and rubber, a revolutionary innovation compared to the flat, unyielding metal insoles of the time.
By 1925, these comfortable inserts were being sold across Europe. The first sandals, created by Karl Birkenstock, emerged in 1963, featuring a single-buckled ‘exercise sandal.’
Margot Fraser and the American Introduction
In 1966, Margot Fraser, a German immigrant raised by parents who opposed Hitler’s regime, discovered Birkenstock sandals during a visit to her native country.
Impressed by their comfort and potential, she struck a deal with Karl Birkenstock to import the sandals to the United States.
However, the majority of retailers considered the sandals hideous, and Birkenstocks became associated with beatniks and hippies, giving rise to the term ‘Birkenstock liberal.’
Challenges and Ownership Disputes
While Birkenstock gained favor among niche wellness stores in San Francisco, the wider fashion world remained unimpressed.
The advent of the internet and the dot-com boom made them the preferred footwear for tech enthusiasts, with Steve Jobs’ well-worn Arizonas fetching a staggering $218,750 at auction.
In the early 2000s, Birkenstock’s growth stagnated, and conflicts among Karl Birkenstock’s three sons—Stephan, Alex, and Christian—complicated the brand’s future.
Family Feuds and Legal Battles
Christian’s messy divorce from his wife, Susanne, in 2003 created additional strain.
During their court battle, Susanne accused Christian of being absent from their children’s lives.
Ultimately, Susanne won the family’s grand art nouveau villa, while her estranged father-in-law, Karl, continued to live next door, forced to share her garden.
In a bold move, Susanne launched a competing footwear brand called Beautystep in 2004, leading to another legal battle.
Eventually, she was allowed to use the Birkenstock name but with restrictions.
New Leadership and Explosive Growth
Recognizing the need for new leadership, Birkenstock decided to appoint an outside CEO. This decision marked a turning point.
Revenues, which were $21.1 million in 2012, surged to $1.34 billion
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