By  on July 25, 2019

PARIS — A Paris commercial court has decided to liquidate Sonia Rykiel after the struggling fashion house failed to secure a new buyer, ending a four-month period of negotiations and extended deadlines and prompting immediate store closures.

The decision throws a spotlight on the challenges facing smaller labels at a time when larger, luxury companies and their megabrands are better equipped to grab consumers’ attention with high marketing budgets and leverage for negotiating prime real estate. Strong heritage, popularity with fashion critics and resonance in its home market — along with hundreds of millions of euros in investments — have not proven enough to keep the Rykiel brand afloat.

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