The French company will auction its assets in two phases: at the end of October and at the end of November.
Sonia Rykiel sells her assets before the end of 2019. This is explained by Richard Morgan, the financial advisor who manages the company’s creditors’ contest. The first bets on the assets of the French firm, which include the brand of all items, in addition to repertoires and prototypes, end at the end of October this year.
The remaining assets will be auctioned in November in a final transaction before the end of the year. The bidders also have the possibility to bid for the rental contracts of the brand, as well as their stores in France, located in Deauville, Bordeaux, Cannes and on Rue de Faubourg Saint-Honoré in Paris.
The brand was acquired by Hong Kong businessmen Victor and William Fung in 2012 and became part of the First Heritage Brands luxury group, controlled by former Louis Vuitton Moët Hennessy (LVMH), Jean-Marc Loubier.
The first bids for the company’s assets end in October this year
Investors wanted to revive the company by emphasizing their identity, based on the founder, Sonia Rykiel, known for her striped knitwear. Despite the historical legacy of the brand, revenues fell and investors showed no interest in their purchase.
Given the lack of investors interested in buying the company, in September this year, the company went to liquidation through a direct purchase of its assets that does not include any debt or costs associated with the brand’s business operations.