French mail order and online company La Redoute, put on sale by its owner Kering, is heading for another major restructuring, with some 700 people possibly losing their job.
Jobs lost in France and abroad
Currently, La Redoute employs 3,300 people, with 2,400 in France and 900 abroad. It is expected that the redundancies will occur both at home and abroad.
La Redoute ran into problems by clinging on to its original activity as a mail order company, missing out on the surge of online sales. In 2008, it employed some 5,000 people, but after a large restructuring 672 people were let go. After that, La Redoute changed its focus to web sales.
Nevertheless, the company keeps on struggling. It has lost one third of its turnover in the past five years and had to take a yearly loss of some 50 million euro.
For sale for a dime and a nickel
La Redoute is part of the Kering group, who is looking for a buyer, as it wants to concentrate on luxury products. Brands like Gucci, Yves Saint Laurent and sports brand Puma are part of its portfolio. Investment funds OpCapita, HIG Capital and real estate company Altarea Cogedim are considered to be interested buyers.
Press agency Reuters claims Kering is willing to invest at least 300 million euro into La Redoute to increase its marketability, meaning the company is up for a dime and a nickel. Union representative Thierry Bertin told press agency AFP that Kering needs to announce the future buyer by the middle of November.
(translated by Gary Peeters)