La Redoute’s CEO and Redcats’ CFO have made a joint offer to purchase mail order company La Redoute. Owner Kering now has to decide which potential buyer, out of the four that have put in a bid, will get the company.
Offer from within the company
Nathalie Balla and Eric Courteille have confirmed, during a union meeting in Roubaix, that they have made a joint offer for La Redoute on Saturday, but did not mention how much they offered for the ailing post order giant.
Up until this point, investment funds HIG Capital and OpCapita have made a bid for La Redoute, alongside real estate group Altarea Cogedim. “We have heard that Nathalia Balla’s restructuring plans are not as dramatic as and show more social restraint than the plans the other candidates have shown”, the labour unions sounded relatively hopeful after the meeting.
A decision before Christmas?
Those same unions think that Kering will make a decision before the Christmas holiday, even though the French luxury concern has refused to confirm that timeframe. Kering, former PPR, had put La Redoute up for sale quite some time ago, when it decided to purely focus on luxury and sports (Gucci, Yves Saint-Laurent, Puma and other brands). Each and every retail chain it owned has subsequently been sold.
This final retail subsidiary has been dragging on for quite some time now, mostly because La Redoute is losing money. Some insiders claim that Kering has spent more than 400 million euro on the company since 2008, needing at least another 300 million euro to cover the losses and to pay for the reorganization. La Redoute had announced at the end of October that 700 of its 3,300 employees had to leave the company.
(Translated by Gary Peeters)