PARIS — Days after off-loading André to footwear e-tailer Spartoo, Vivarte will sell French fashion chain Naf Naf to China’s La Chapelle Fashion Co., according to local reports.
A Vivarte spokeswoman declined to comment, saying the information was sourced from the unions.
The debt-distressed French retailer also recently sold its Kookaï and Pataugas brands as part of a broad restructuring. Also in its portfolio, the Chevignon brand is still up for sale.
La Chapelle Fashion Co. will reportedly take over all of Naf Naf’s stores bar one, according to reports. Naf Naf counts around 500 points of sale, including 220 branded stores in France and a subsidiary in Spain, and employs a staff of 920. It had been on the block since March 2017.
Outside of Europe, Latin America is among the brand’s strongest markets, with approximately 100 points of sale.
Naf Naf for now has no presence in Asia or North America.
Vivarte, which is one of France’s largest clothing groups by sales, has struggled to pay back about 1.5 billion euros to four investment funds that serve as shareholders and lenders to the company.
As part of a broad restructuring, the group in 2017 shuttered 135 stores under its La Halle footwear brand, which incurred layoffs of 451 people, the Vivarte spokeswoman said.
The group reported 1.8 billion euros in turnover in the financial year ended Aug. 31, according to a statement. Net profits were down to 305 million euros versus having been down 672 million euros in the prior year, with Vivarte chief executive officer Patrick Puy saying they’re back on track.