Is Destira My Destiny? Whether, When, and How to Join One’s Small Family Business

Abstract

In mid-2012, after successful years in large public companies and obtaining an MBA, middle daughter Jen, 32, is trying to decide whether the time is right for her to enter her mother and sister’s small family business to grow it further. Destira, Inc. was a designer/manufacturer of gymnastics wear for girls, headquartered in California. Donna Levy founded the company in 1990, after years of making leotards for her three daughters, who were competitive youth gymnasts, and getting requests from other parents to make the garments for their own children. In 2005, when Donna’s oldest daughter, Jodi, joined Destira, Donna gave her a 50 percent equity stake. Between then and year-end 2011, the pair grew the revenues from $550,000 to $1.06 million, increased the number of outlets carrying the brand, upgraded the internal accounting/operations software, and added an online direct-to-customer retail business. The case shows realistic considerations for the individual, family, and business when evaluating whether or not to commit to join the family enterprise.

This case was prepared for inclusion in Sage Business Cases primarily as a basis for classroom discussion or self-study, and is not meant to illustrate either effective or ineffective management styles. Nothing herein shall be deemed to be an endorsement of any kind. This case is for scholarly, educational, or personal use only within your university, and cannot be forwarded outside the university or used for other commercial purposes.

2024 Sage Publications, Inc. All Rights Reserved

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Resources

Exhibit 1: Photo of the Three Levy Girls in the 1980s in Leotards Made by Their Mother

Figure

Exhibit 2: Destira Vision and Values

Vision

To be the gold standard of gymnastics apparel, with one of the most dedicated and loyal customer followings of any brand.

Values
  • Create a work environment that values and promotes teamwork and diversity, where we treat each other with dignity and respect.
  • Communicate honestly and directly to each other and our customers.
  • Remain dedicated to the highest standards of quality fabric and construction.
  • Develop fanatic customers, not just satisfied customers, who spread the word about Destira to others.
  • Positively contribute to the communities of countries globally and the communities in which we operate locally.

Exhibit 3: Top Eight Competitor Brands for Girls Sleeveless Gymnastics Leotards

Brand

Founded In

Headquartered In

Website

Alpha Factor

<1982

Pennsylvania

http://www.alphafactor.com

Snowflake

<1982

California

http://www.snowleotards.com

GK Elite

1983

Pennsylvania

http://www.gkelite.com

Dreamlight Activewear

1989

Virginia

http://www.dreamlightusa.com

Rebecca’s Mom

1993

California

http://rebeccasmom.com

Destira

1990

California

http://www.destira.com

Infiniti

1999

Texas

http://www.infinitisportswear.com

K-Bee

~2000

California

http://www.k-beeleotards.com

Motionwear

~1987

Indiana

http://www.motionwear.com

Exhibit 4: Profit and Loss Statement, 2006–2011 ($)

Year

Income

COGS

Other Expenses

Net Income

2006

627,922

288,515

346,427

(864)

2007

713,695

421,760

401,530

(109,595)

2008

812,755

391,227

400,808

20,720

2009

814,182

344,975

444,739

24,468

2010

874,994

429,899

450,947

(5,852)

2011

1,063,595

492,485

502,442

68,668

This case was prepared for inclusion in Sage Business Cases primarily as a basis for classroom discussion or self-study, and is not meant to illustrate either effective or ineffective management styles. Nothing herein shall be deemed to be an endorsement of any kind. This case is for scholarly, educational, or personal use only within your university, and cannot be forwarded outside the university or used for other commercial purposes.

2024 Sage Publications, Inc. All Rights Reserved

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