The Business of Fashion
Agenda-setting intelligence, analysis and advice for the global fashion community.
Agenda-setting intelligence, analysis and advice for the global fashion community.
PARIS, France — Kering SA, the owner of Gucci, entered exclusive talks to sell La Redoute to management, aiming to complete the disposal of the mail-order unit in the first half of 2014 as it focuses on luxury and sporting goods.
The discussions also concern the Relais Colis home-delivery business, the Paris-based company said in a statement.
Kering’s board met today to consider four offers and decided to pursue negotiations with a group led by La Redoute Chief Executive Officer Nathalie Balla and Eric Courteille, chief administrative officer of the Redcats home-shopping unit that’s being broken up and sold.
The owner of luxury brands that also include Bottega Veneta will invest in the companies’ transformation and provide a “significant” infusion of cash, both parties said. The bidder has pledged to minimize job cuts, they said.
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Kering said last month it expects net income to drop “very significantly” this year because of costs related to the sale of La Redoute and one-time charges for the Puma sporting-goods brand. The company has sought to sell La Redoute since 2010.
The mail-order business is the largest unit of Redcats. A fund owned by Swedish buyout firm Nordic Capital agreed in February to buy two Redcats brands, bringing proceeds from selling the division’s parts to more than $1 billion.
By Andrew Roberts; Editors: Paul Jarvis, Robert Valpuesta, Celeste Perri
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