PARIS — Cacharel has sold its outlet stores and men’s wear division, raising a total of 9.2 million euros, or $11.6 million, toward saving jobs and financing future development.
The French fashion house said it had sold the rights to its brand for men’s wear to Turkey’s Aydinli Group, which has held the license for 14 years, for an undisclosed sum.
The outlets — two in France, one in Spain and one in Italy — were sold to various buyers, a spokesperson for the company said.
Cacharel plans to plug 5.6 million euros, or $7 million at current exchange rates, into its job preservation plan between now and the end of October. The remaining funds will go toward increasing equity capital and financing the new development strategy, the company said.
“Thanks to a healthy new financial structure, to the growing profile and success of its collections, to a solid distribution network and the development of new licenses, Cacharel is writing a new page in its history and will return to profit in 2010,” it said.
The brand, which shot to fame in the Sixties and Seventies with its youthful, romantic style, has lost steam in recent years and now owns only one directly operated store in Avignon, France.
In a bid to turn around its waning fortunes, Cacharel last year signed on Belgian designer Cédric Charlier to design the women’s wear collection and inked a licensing deal with Italy’s Aeffe Group to manufacture and distribute the line worldwide.