PARIS — A French commercial court has extended the bidding process for beleaguered French fashion house Sonia Rykiel to June 12, with a decision expected in the first half of July.
The court extended the initial May 31 deadline for offers for the label to June 12, adding half a month to the procedure, said a source with knowledge of the matter.
Sonia Rykiel went into receivership in April. Its owner, First Heritage Brands, mandated investment bank Compagnie Financière Edmond de Rothschild in January to seek an investor or outright buyer for the brand, which it acquired in 2012.
Rykiel’s revenues stood at 83.7 million euros in 2011, with a loss of 1.4 million euros, the year before the founding family sold an 80 percent stake to Fung Brands, an investment company backed by Hong Kong billionaires Victor and William Fung.
Now known as First Heritage Brands, the owners sought to revive the business by capitalizing on its identity, anchored by founder Sonia Rykiel, who was dubbed the “Queen of Knits” by WWD.
Sales came to 35 million euros in 2018, with a loss of 20 million euros, excluding its investment of 10 million euros in events marking the house’s 50th anniversary.
The house let go its creative director Julie de Libran in March. De Libran, who had been recruited in 2014, had moved the collections upscale.
Rykiel counts 10 freestanding boutiques, most of them in France, including its historic flagship on Boulevard Saint-Germain, after closing locations in New York, London, Brussels and Luxembourg. It counts around 200 points of sale worldwide, with partners including Lane Crawford and Net-a-porter.