La Redoute sale finalized

La Redoute sale finalized

Six months after Kering (former PPR) decided it would sell La Redoute to its two managers, the deal has been finalized. Nathalie Balla and Eric Courteille will have 51 % of the shares, while employees have 49 %.

For a symbolic euro

Kering has sold its mail order subsidiary La Redoute and its delivery service Relais Colis to Balla-Courteille, as expected. The deal almost failed after labour unions did not agree to the deal back in March, but Nathalie Balla (La Redoute CEO) and Eric Courteille (parent company Redcats' Chief Administrative Officer) still succeeded in finalizing the deal.

 

The duo will only have to pay a symbolic euro for the company, while Kering will add another 315 million euro to help transform the company into a competitive e-commerce company. On top of that, Kering will also pay 180 million euro for La Redoute's social plan as 1,178 (out of 3,437) employees will have to leave the company.

 

The former mail order giant belonged to Kering since 1994, but several years ago, Kering decided to get rid of all of its shares in the distribution branch and focus on luxury, sports and lifestyle through brands like Gucci, Saint Layrent, Boucheron, Puma and Volcom.

 

Break-even in 2017?

Joint-presidents Balla and Courteille say they need until 2017 to get "La Nouvelle Redoute" back in black, with a focus on its traditional core business: ladies' and children's clothing, linen and decoration.

 

The first large challenge is to build a new logistics center in Wattrelos, near Roubaix (in northern France).

Questions or comments? Please feel free to contact the editors


Carrefour buys stake in Showroomprivé

12/01/2018

Carrefour has obtained a 17 % minority stake in flash sale seller Showroomprivé with the intent of increasing its digital and non-food reach. Former shareholder Conforama did suffer a loss.

Will free home delivery disappear?

15/12/2017

A growing number of online orders also brings additional pressure on the logistical industry. Free home delivery can no longer be maintained according to research company ECC Köln. More flexible options should be installed.

Amazon brings its private labels to Europe

14/12/2017

After it introduced Amazon Prime to an increased number of European markets, Amazon is now bringing in its own FMCG private labels. Over the past few weeks, the online department store launched several private label products in Europe and it has plans for even more. 

Amazon Echo is now available in the Benelux

11/12/2017

Amazon announced it will ship its smart speaker Amazon Echo to another 28 countries, including Belgium and the Netherlands. Its own music streaming service will also get a local launch.

Luxury manufacturers can block retailers from selling on Amazon

07/12/2017

Luxury product manufactures can block retailers from selling their merchandise on online marketplaces like Amazon. The European Court of Justice has ruled on the matter after cosmetics manufacturer Coty filed a complaint.

Surge in mobile sales during Thanksgiving weekend

29/11/2017

During Thanksgiving weekend in the United States, which contains Black Friday and Cyber Monday, there was a big surge in mobile sales. Those two days saw a total sales figure of almost twelve billion dollar (just shy of ten billion euro).

Back to top