It’s tough out there and will probably get tougher. Europe’s retail and consumer goods sector emerged as the most “distressed” in Q4 2025, rising to its highest level since the global financial crisis, according to a new report.
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And the outlook is “materially fragile moving into 2026”, according to the aptly-named Weil European Distress Index (WEDI).
The quarter saw acute pressure on both liquidity and profitability, citing “weak demand, persistent cost inflation and tighter consumer spending continued to squeeze margins”.
Looking ahead, distress in the sector is expected to deepen further in 2026, citing “rising input costs – including increases in the UK minimum wage – begin to feed through more fully”.
Ongoing uncertainty in global supply chains, as trade settlements remain in flux, adds further downside risk, it added.
In all commerce, “liquidity and profitability pressures remain acute and distress is becoming increasingly uneven across sectors and countries”, the report continued. “As a result, corporate distress is expected to rise through 2026, reflecting weaker investment conditions, elevated borrowing costs and continued uncertainty around trade policy and geopolitical risk. This is likely to drive a widening divergence, with pressure intensifying in more exposed sectors and countries while others remain comparatively resilient.”
And while the UK was ranked third behind Germany and France in terms of distress levels in the final quarter of 2025, it has still seen “elevated pressure across liquidity, profitability and risk metrics, amid subdued business confidence and cautious investment”.
Adding to the bleak outlook, Neil Devaney, partner and co-head of Weil’s London Restructuring practice, said:“Distress remains persistent and increasingly uneven, driven by pressure on liquidity and investment. That divergence is most pronounced in Retail and Consumer Goods, which is set to be the most challenged sector in 2026.
“The sector is becoming more polarised, with smaller and mid-sized retailers under the greatest strain, while businesses with stronger balance sheets and established omnichannel models prove more resilient. In the UK, recent Budget measures – including higher National Insurance and Minimum Wage costs – are set to add further pressure into 2026. With growth expected to offer little relief over the coming years, these pressures are unlikely to ease quickly.”
Matteo Mascazzini is the new CEO for the Americas at Giorgio Armani Corporation. The former Gucci executive assumes the role with immediate effect, succeeding Izumi Sasano, who returns to oversee the group’s operations in Japan.
Matteo Mascazzini
Mascazzini boasts a 30-year career that has seen him hold leadership roles at numerous international fashion houses. After beginning his career at Versace, he consolidated his experience within the Armani Group, where for more than 15 years he held a range of senior positions, including CFO for Japan, CEO for Australia, and COO for the US. Most recently, he served as President of Gucci EMEA.
With a strong academic background in finance and business (Bocconi University and London Business School), Mascazzini is regarded as an expert in managing complex organisations and developing luxury retail on a global scale.
Last November, Giorgio Armani S.p.A. announced a new board, marking the completion of probate procedures following the death of the founding designer. The board of directors now comprises eight members, including three representatives of the Armani family.
In conjunction with the formation of the new board, the group confirmed the appointments of Pantaleo Dell’Orco as chairman and Giuseppe Marsocci as CEO and general manager of Giorgio Armani S.p.A.
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Members of the jury for the DHL Talent Mode Prize are ready to decide between the finalists in this fifth edition, supported by DHL Express France and the French Federation of Women’s Ready-to-Wear (FFPAPF). On Saturday January 10, the labels Bourrienne Paris X, Maison Guillemette, and Maison Lecomte Flament will present their projects ahead of the awards ceremony, scheduled for January 29.
The brand is rooted in the rich history of the Hôtel Bourrienne – Bourrienne Paris X
The winner will receive €10,000 in DHL shipping vouchers, together with personalised support for international transport and online sales. The FFPAPF, for its part, will share its expertise with the winner through an advisory programme on international strategy. The winning label will join past winners, namely 71bis, Mapoésie, Emile et Ida, and Rowen Rose.
A final between specialist labels
Bourrienne Paris X is synonymous with the white shirt. The brand positions itself accordingly, emphasising the historical heritage of the Hôtel Bourrienne with which it is associated. Its collections draw inspiration from French history, recalling a time when figures such as Victor Hugo, Bonaparte, and Chateaubriand were regular visitors to the establishment. Bourrienne Paris X’s artistic director, Cécile Faucheur, creates high-end pieces in linen, silk, or cotton, drawing on trades, situations, and personalities, and exploring a variety of silhouettes and hues. Founded in 2017, the brand also relies on its linen mill in the north of France.
Maison Guillemette’s ‘white collection’ continues to appeal to the label’s clientele – Maison Guillemette
But the shirt label faces two competitors in the race for the DHL Talent Mode 2025 Prize, with FashionNetwork.com as a partner, starting with Maison Guillemette. This label, the brainchild of Guillemette Bataille, was not initially focused on ready-to-wear. The designer first created brooches and flower crowns for brides. The brand now collaborates with Guerlain on its ‘Le Muguet’ fragrance.
A triumvirate inspired by craftsmanship
In 2016, Guillemette Bataille developed a black top with removable elements and, to her surprise, the piece proved a success. With its own workshop, where around 30% of its collections are produced, Maison Guillemette now offers a wardrobe ranging from tops and trousers to dresses, and continues to cater to brides with its ‘white collection.’
Maison Lecomte Flament was founded in 2021 – Maison Lecomte Flament
The third and final finalist in this triumvirate, Maison Lecomte Flament specialises in creating scarves, bucket hats, pareos, and caps in wool or cotton, using entirely natural fibres. Its founder and artistic director, Colombe Lecomte Flament, places particular emphasis on the brand’s family spirit, born of the creative atmosphere fostered within her own family. With pieces that are sometimes ‘vintage-kitsch,’ the brand champions values such as conviviality, exchange, and sharing. Maison Lecomte Flament splits its production between Italy and India, two countries historically linked to the manufacture of colourful fabrics.
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Fashion and homewares digital retail platform N Brown Group has its first chief operating officer. Natalie Rogers has been promoted to the newly created role “strengthening N Brown’s leadership team as the group enters the next phase of growth driven by operational efficiency and disciplined execution”.
N Brown COO Natalie Rogers
The retailer said the creation of the COO role “brings greater focus and accountability to operational execution across people, technology and supply chain, strengthening end‑to‑end delivery and enabling clearer alignment between strategy and performance”.
The role will also support “faster decision‑making, improved operational efficiency and consistent execution as the Group continues to evolve its digital and financial services capabilities”, it added.
Rogers joined N Brown in 2024 as chief people and sustainability officer, having led a number of “critical initiatives supporting the group’s business transformation”, including the design and implementation of a new operating model and a multi-year cultural programme.
She was also instrumental in delivering the first “double materiality assessment, ensuring customer expectations and stakeholder insights directly informed sustainability priorities across the group”, it added.
As COO, “Natalie will use her experience of embedding cultural shifts and leading complex change to continue driving forward N Brown’s ongoing business transformation”.
Steve Johnson, executive chair and CEO, added: “Providing the best possible experience for our customers starts with having an efficient, well-aligned and effective business. The creation of the role reflects our focus on end-to-end execution of our transformation strategy.
“Natalie has a proven track record of delivering large scale organisational change both within N Brown and across other organisations, making her ideally placed to drive forward operational efficiency.”