“The launch of an investigation is a necessary step to establish the truth and does not constitute recognition of the complaint’s merits,” said SMCP.
The group behind French labels Sandro, Maje and Claudie Pierlot said organic revenues in mainland China rose 92.6 percent in the first quarter.
Consumers in China can dress avatars of themselves in Sandro and Maje apparel.
SMCP said sales fell 20.5 percent in the fourth quarter, as the coronavirus crisis continued to weigh.
Borsarello replaces Alix Le Naour, who held the position for a decade.
The former Givenchy CFO worked for LVMH for 15 years.
The group plans to focus on organic growth and is doubling marketing investments next year.
The tailoring specialist, SMCP Group’s latest acquisition has plans to gradually expand outside of its home market of France.
The fashion company will detail efforts to mitigate the crisis at an investor day on Oct. 27.
“We’re not looking to replicate what we had before,” said the executive.
The pandemic will have a strong impact on the second quarter, but early signs of recovery in China are encouraging, said ceo Daniel Lalonde.
Executive committee members are forgoing 30 percent of their fixed salaries.
The owner of Sandro, Maje, Claudie Pierlot and De Fursac also offered reassurances on its liquidity position.