PARIS — Selective Beauty has entered into administration in France.
The distribution and manufacturing concern stated it is in recovery proceedings in the commercial court of Bobigny, France, to search for an agreement with its creditors and ensure the long-term strength of the group. The firm said two receivers have been appointment to help its management find the best solution.
“This recovery proceeding is limited to the French companies of the group, with foreign affiliates being kept out of the procedure,” stated Selective Beauty. It explained management is working to set up a plan to strengthen the company, both financially and organizationally, in line with today’s difficult market conditions.
In July 2008, Milan-based investment group Investindustrial acquired 77 percent of Selective Beauty. Corrado Brondi, Selective Beauty’s chairman, holds the remaining stake.
In an interview in November 2008, Brondi said there was a focus on revising the firm’s brand portfolio. The accent had shifted from the more costly licensing and brand-development activities to lucrative distribution deals. To that end, 13 fragrance licenses were trimmed from Selective Beauty’s lineup, which now includes the beauty businesses of John Galliano, Max Mara, Trussardi, Benetton, Iceberg and Breeze. The company maintains numerous distribution deals, as well.