PARIS — Gerard Darel has struck a deal with its creditors to reschedule its debt, estimated at around 100 million euros, or $134.6 million at current exchange.
A Paris commercial court approved the agreement between the French fashion firm, owned by private equity firm Advent International, and around 10 lenders. It gives Gerard Darel an extra 18 months to pay back the loans.
Sandrine Lilienfeld, who took over as chief executive officer of the brand in August 2013, has set about restructuring the company by unveiling a new store concept, revamping its advertising campaign and bringing on board creative director Brigitte Comazzi Duval to refresh its ready-to-wear collections.
The agreement “will allow the management of Darel to pursue the development of the group and its brands as set out in the business plan, namely the deployment of new Gerard Darel and Pablo store concepts and continued international development, with new opportunities in the United States, Switzerland and Russia,” the company said on Tuesday.
International development is key to compensate for continued weakness in France, which accounts for 62 percent of total sales. Though she declined to provide figures, Lilienfeld indicated in an interview earlier this year that Gerard Darel posted a loss in 2013.