Two potential buyers, including one backed by the French government, have come forward to acquire Le Coq Sportif, the French sportswear brand currently under judicial reorganization. In an effort to facilitate the sale, the Grand Est region has agreed to write off 50% of the company’s outstanding debt.
Could a takeover be on the horizon for Le Coq Sportif? – Le Coq Sportif
Le Coq Sportif, which was placed under court-ordered protection in November, supplied the French Olympic delegation during the Paris 2024 Games. Founded in Romilly-sur-Seine (Aube), the brand employs around 300 people in France.
“Two buyers have expressed interest. At this stage, only one appears able to submit a viable recovery plan,” reads a report presented by Franck Leroy, president of the Grand Est region, which was approved on Friday.
According to the document, one of the bids is backed by the French state. It proposes to preserve operations at the Romilly-sur-Seine site and offers better terms for both public and private creditors. The alternative proposal, by contrast, reportedly involves the sale of licensing rights abroad.
In April, the court-appointed administrator is expected to consult creditors—including the Grand Est region—on a proposed partial debt forgiveness plan designed to enable the takeover. The Paris Commercial Court will then need to approve the recovery plan.
Le Coq Sportif’s historic workshops in Romilly-sur-Seine,Aube – Archives Le Coq Sportif
On Friday, the regional council voted in favor of canceling 50% of its €2.4 million claim against Le Coq Sportif—equivalent to €1.2 million—and rescheduling repayment of the remaining half over a ten-year period.
In 2021, the Grand Est region granted the brand a zero-interest loan of €2.65 million over 11 years to help restructure its historic factory in Romilly-sur-Seine, aimed at ramping up production for the 2024 Olympic Games.
Le Coq Sportif reportedly owes between €60 million and €70 million to public institutions, including €42 million in loans granted by the French state.
The company did not immediately respond to AFP’s request for comment. Its parent company, Swiss investment holding Airesis, also declined to comment.
END. promised it would be going big on its 20th anniversary celebrations and judging by the fashion retailer’s itinerary of events it’s actually huge.
With three events already under its belt in the January-March period, there are over 20 in the pipeline for the rest of the year involving a programme of curated events, pop-ups, activations, collaborations and partnerships “crafted hand-in-hand with brand partners who have journeyed with END. over the last 20 years”.
Participants include a host of big brands including A Bathing Ape, Adidas, Aries, CP Company, Crocs, Needles, Puma, Salomon, Stone Island, Umbro, Universal Works, Y-3, “and many more”.
It’s all in recognition of a brand that has grown from an independent in Newcastle to an international name with flagship locations in Newcastle, Glasgow, Manchester, London, and Milan, “defining its position as a trailblazer bridging the gap between luxury and streetwear, balancing exclusivity with accessibility with its signature curation of the world’s biggest brands to the most sought-after emerging labels all under one roof”.
The 20th anniversary will also honour the brand’s North East roots and the best of British subculture “focusing on narratives deeply connected to the retailer’s heritage, customers and cultural influences, touching on nostalgic themes from the coast to the corner shop and nightlife to the classic British pub”.
Global threads manufacturing giant Coats Group is quitting its US Yarns business, resulting the closure of its Performance Materials (PM) facility based in Kings Mountain, North Carolina.
It comes after a strategic review of the wider Americas yarns business that has already resulted in the closure of the Toluca, Mexico facility in December. The review, which started in Q4 2024, concludes that the Americas Yarns business doesn’t fit with Coats’ future strategy, noting the exit from this non-core operation “will result in a positive annualised impact to both the PM and Group adjusted EBIT margins”.
The exit process is expected to complete in Q2 and Coats said it anticipates to generate a modest cash inflow, after closure costs, that will “allow management to focus on driving forward and growing other parts of the group’s attractive portfolio.
In 2024, revenues and EBIT for US Yarns was $68 million and $3 million, respectively.
Last month, Coats delivered a trading statement that highlighted “strong delivery, exciting medium-term targets with compounding cash and earnings growth”.
While the business reported a string of positives for the year ended 31 December (total revenues up 8% to $1.5 billion; apparel and footwear revenues up 13%; EBIT up 16%), it also noted that the PM business continued to drag across all North America end markets while there was also structural softness in North American Yarns.
The writing was perhaps on the wall for the future of its US PM ops in a statement that included that its Americas manufacturing footprint had been “right-sized” in Q4 with the closure of the Toluca site “to align to structural softness in North American Yarns [that will] drive immediate margin improvement”.
Poland’s biggest fashion retailer aims to double its revenue to 40 billion zlotys ($10.56 billion) by 2027, driven by the rapid expansion of budget brand Sinsay and its omnichannel strategy, it said on Thursday.
Reuters
“In three years we assume the company will be twice as big,” CEO Marek Piechocki said during a press conference.
Under LPP‘s new three year strategy through 2027, Sinsay is set to account for 75% of the group’s total sales, it said.
The Gdansk-based retailer aims to expand its store network to around 7,500 outlets by the end of 2027, with Sinsay stores making up around 6,000 of those, and to increase e-commerce sales to 10 billion zlotys in the same period.
“As in previous years, the company intends to consistently pursue its policy of sharing the profit generated with its shareholders,” LPP said, indicating plans to maintain its dividend payouts. The management recommended a dividend of 660 zlotys per share to be paid for the 2024 financial year.
The company also aims to double its core earnings (EBITDA) by 2027, compared to last year’s 3.67 billion zlotys, while keeping its debt levels safe, it said.
LPP’s revenue rose by 20% to 20.19 billion zlotys in 2024.