The French fashion company, property of the group Modacin, has signed an agreement in which the brand will be now owned by its creditors, among them the investment funds Farallon, Carval and CVC, after not being able to face its debt.
Camaïeu passes into the hands of its creditors. The French womenswear company, property of the group Modacin, has signed an agreement with its creditors, among them the investment fund Farallon, Carval and CVC, to transfer the brand after not being able to face the debt, according to Les Echos.
Likewise, the company will be able to restart its strategical plan that has the objective to boost its online sales and resume its stores network. The group also expects to strengthen its presence in foreign markets, which still are one of the company’s growth vectors, where it registers 20% of the sales. At the same time, after the transfer, the new owners announced that they will make changes in the company’s headquarters in order to face the new growing period.
In 2016, the creditors came to Camaïeu’s rescue, which brought with it a debt of 1 billion euros. In that way, the company reduced its liabilities to 459 million euros when it converted half of the debt to shares. As part of the agreement, both parties decided to pass the brand into its creditor’s hands if the group’s operative margin dropped below 75 million euros.
Camaïeu, which currently has a network consisting of 645 stores and provides employment to near 6,000 people, closed 2017 fiscal year (a period closed in March) with a revenue of 718 million euros.