Byline: Katherine Weisman

PARIS--Naf Naf revealed Monday it had paid $19.4 million (105 million francs) at current exchange for the Chevignon brand name, and that, as expected, it is buying the brand's parent company, SA Etablissements Charles Chevignon, in a multistep deal.
The disclosures were made at Naf Naf's annual meeting by Gérard Pariente, president, and his brother, Patrick Pariente, managing director.
As reported, Naf Naf, a leader in the junior apparel business in France, announced last week it had acquired the Chevignon brand, known primarily for its young men's wear, but did not disclose the price.
The brand name was acquired by Naf Naf BV, a Dutch subsidiary, the Parientes explained. It was decided to use the Dutch subsidiary for the deal since the acquisition of a brand name can be amortized in the Netherlands but not in France.
At the same time, the Naf Naf corporation in France bought 20 percent of ECC for $2.4 million (13 million francs). Next spring, Naf Naf will purchase the remaining assets of ECC for an undetermined price, but the assets could be valued at between $11.1 million (60 million francs) and $14.8 million (80 million francs), said Patrick Pariente.
In addition, Naf Naf will pay an an estimated $4.6 million (25 million francs) for costs related to new trademark registration.
A new division at Naf Naf set up to operate the Chevignon business will have a licensing agreement with Naf Naf BV, to which it will pay royalties of 5 percent of sales. This division will assume all the management, logistics and accounting responsibilities for the Chevignon business.
Guy Azoulay, the founder of ECC and creator of the Chevignon brand, will remain the creative director of the label. Chevignon will keep its freestanding store on Rue Etienne Marcel here, and its group of about eight freestanding franchised stores will continue to operate, at least for the short term, Patrick Pariente said.
Chevignon, however, will sell its Trading Post store, an apparel and home shop on the trendy Rue des Rosiers in the Marais neighborhood here.
In other news disclosed at the meeting, Naf Naf plans to sell its 32 percent stake in Diapositive, a French women's apparel company, to a financial investor chosen by the majority owners of Diapositive. No financial figures were provided.
Naf Naf also disclosed sales volume of certain licensed products. Some 3.3 million bottles of the Une Touche de Naf Naf women's fragrance, launched in 1991 by L'Oréal in France and now distributed in some eight European countries, had sales of $22.1 million (119 million francs) last year. The children's wear line, licensed to Albert SA, had international sales of $14.1 million (76 million francs).
Naf Naf reiterated that it is no longer on a calendar year, but one that ends Feb. 28. For the 14 months ended February 28, 1994, the company had net profits of $22.4 million (121 million francs) on consolidated sales of $241.1 million (1.3 billion francs).
--Fairchild News Service

To Read the Full Article

Tap into our Global Network

Of Industry Leaders and Designers

load comments
blog comments powered by Disqus