PARIS — A Paris commercial court has placed Gerard Darel into receivership as private equity firm Advent International searches for a buyer for the struggling French fashion firm, according to a source familiar with the matter.
A French commercial court late on Monday granted the firm’s request for bankruptcy protection, with an observation period of four months. This follows the collapse of talks with a potential acquirer.
“It makes the company more attractive for an investor,” the source said. “There have been several signs of interest in the last few weeks.”
Officials at Gerard Darel had no comment on the court decision.
The company struck an agreement with creditors last July to reschedule its debt, estimated at around 100 million euros, or $135 million. All dollar rates are calculated at average exchange for the period concerned.
This was part of a wide-ranging effort to turn around the business under chief executive officer Sandrine Lilienfeld, who took over in August 2013. However, the economic environment has remained unfavorable and the company is again struggling to honor its financial commitments, the source said.
Advent International acquired Gerard Darel in 2008.