PARIS — Amid a morose climate for the luxury sector in France, men’s wear brand Zilli has filed for a safeguard procedure in the commercial court of Lyon, a company spokesman confirmed.
He said between 2013 and 2015 the label’s sales slid from 93 million euros to 73.8 million euros, or $98 million to $81.9 million at average exchange for the respective years. Among contributing factors were a drop in revenues in the Commonwealth of Independent States since the onset of the region’s economic crisis in 2014, as well as slow business at Zilli’s Paris flagship on Rue François 1er following the recent terrorist attacks. Ninety percent of that location’s sales typically come from luxury tourists, the spokesman said.
The heritage brand known for its luxury leather jackets has a staff of 180 in France, where it plans to lay off 36 employees, based mainly its atelier in Lyon, the company’s headquarters.
Zilli general manager Laurent Schimel is set to present the company’s restructuring plans on Oct. 18.
Founded in 1970, Zilli boasts the Entreprise du Patrimoine Vivant (or Living Heritage Company) label, a mark of recognition recently put in place by of the French state to reward French firms for the excellence of French know-how. The brand targets men of power between the ages of 30 and 60.
With 64 freestanding stores in 23 countries, Zilli has recently been making inroads in the U.S. Its first stateside flagship opened in the Four Seasons hotel on New York’s 57th Street in 2009, followed by a second store in the Washington, D.C., area in 2013 and a corner in Battaglia in Beverly Hills, CA.
With 62 stores in 23 countries, of which 12 are fully owned, Zilli has recently been making inroads in the U.S. Its first stateside flagship opened in the Four Seasons hotel on New York’s 57th Street in 2009, followed by a second store in the Washington, D.C., area in 2013 and a corner in Battaglia in Beverly Hills, CA.
The brand later this month plans to open a corner in the Tsum department store in Moscow plus a boutique in Barvikha Luxury Village, a high-end shopping center based outside of the city, in partnership with Mercury Group, the spokesman said.