Sonia Rykiel seeks bankruptcy protection

France
Published:  07 May, 2019

Acquired by a Chinese investment fund in 2012, the French fashion label has been facing severe financial difficulties in recent years.

Sonia Rykiel is reported to have applied for receivership while it continues its operations in the hope of finding a potential buyer. Founded in 1968 by the eponymous designer, Chinese investment fund Fung Brands acquired 80% of the label in 2012. Renamed Firts Heritage Funds, it fully acquired the capital at the beginning of 2016, a few months before the death of the French designer. At the time, Sonia Rykiel had announced a recovery plan, which included reducing the staff by 15%, but, in 2018, the label’s turnover amounted to €35 million, about half of when it was bought. It has since closed stores in Belgium, the U.S., England and Luxembourg.

Since the departure of Julie de Libran on March 14, the Company has still not named a new Artistic Director, alleging it needs "to define the future organisation of the studio to continue its future development. Sonia Rykiel’s collections include a range of leather footwear, bags and garments.

Source: Capital