Richemont, the world’s second largest luxury group, has tasked business bank Nomura to find a buyer for Lancel, a French leatherwear brand, because of its disappointing results.
Half a billion euro
The Swiss luxury group hopes to receive some 500 million euro for the French label, having bought it in 1997 for some 210 million euro. It seems quite a hefty price for a company that has taken losses for years: in 2011 it managed to return to positive numbers, but fiscal year 2012 has seen another loss of 20 million euro, with a turnover of 350 million euro. Those disappointing results meant that Marty Wikstrom, CEO of Richemont’s fashion and accessories branch, left the company last May.
Three quarters of Richemont’s turnover comes from jewelry (Cartier, Van Cleef & Arpels) and watches (Piaget, IWC, Jaeger-LeCoultre among others), but the company is also actively involved in the fashion and leatherwear sector with brands like Lancel, Alfred Dunhill, Azzedine Alaia and Chloé.