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.
After agreeing to a record €1.25 billion tax settlement in Italy last year, the French luxury group Kering is now being investigated by financial prosecutors in France. The inquiry “appears to be linked to the potential consequences” in France for the company’s use of a Swiss logistics centre, LGI, Kering said in a statement Thursday confirming the investigation.
The centre’s alleged role in dramatically lowering taxes for its flagship brand Gucci led to last year’s settlement in Italy. Investigative news site Mediapart, which first revealed the Swiss operation in 2018, reported this week that the charges now being investigated in France were for “aggravated laundering of tax evasion.” Investigators are focusing on how Swiss scheme impacted taxes at its French brands Yves Saint Laurent and Balenciaga, Mediapart said.
In its statement confirming the investigation, Kering nonetheless said it “refutes in the strongest possible terms” the article’s allegations.
Editor’s Note: This article was revised on 18th December 2020. An earlier version of this article stated that Kering confirmed it was being investigated for financial crimes. The article has been updated to clarify that Kering confirmed the investigation and not that its actions were criminal.
Fashion brands are edging in on the world’s largest gathering of design professionals and their wealthy clients, but design companies still dominate the sector, which is ripe for further consolidation, reports Imran Amed.
Blocking the deal would set a new precedent for fashion M&A in the US and leave Capri Holdings in a precarious position as it attempts to turn around its Michael Kors brand.
After preserving his fashion empire’s independence for decades, the 89 year-old designer is taking a more open stance to M&A.
The sharp fall in the yen, combined with a number of premium brands not adjusting their prices to reflect the change, has created a rare opportunity to grab luxe goods at a discount.