Roseanna, in receivership, is looking for buyers
Thanks to its founder Anne-Fleur Broudehoux's sharp stylistic bias, Roseanna is one of the Parisian brands that has revived the premium women's ready-to-wear market since its creation in 2007. But having experienced difficulties since the health crisis, Fashion network.com has learned that the brand was placed in receivership by the Commercial Court of Paris on November 8. The label is now looking for buyers to ensure its sustainability and give new life to its expansion projects.
The first issue was opening several stores in the capital in 2019, just before the "yellow jacket" movement in France and then the global pandemic. "Paris was no longer Paris, the neighborhoods in which we set up shop were deserted by locals and tourists, such as in Saint-Germain-des-Prés, for example," recounts Broudehoux.
"We had chosen top locations, to seek growth through organic traffic, in parallel with the development of Roseanna's reputation. The consumers were not there and the retail activity was not in line with our forecasts. And, we had financed the inventory, the renovations and structured the teams for the development" adds Barbara Quaranta, general manager of the brand since 2018.
The repayment of a PGE (state-guaranteed loan) granted in 2020 is also weighing on the brand's finances. Since last April, it has doubled the amount of loan repayments it makes each month. On top of that, the Omicron variant, the war in Ukraine and inflation means that 2022 has not been the year of recovery the brand had hoped for.
Employing 25 people, the company operates 7 points of sale, including 4 boutiques, three in Paris and one in Lyon, and 3 corners at Galeries Lafayette Haussmann, Printemps Haussmann and Bon Marché. A network of approximately 150 multi-brand retailers also distributes its products. The wholesale channel represents 50% of the brand's activity, compared to 25% for retail and the same for online sales.
Several candidates for the takeover are in the running
As part of the procedure, a search for potential buyers has already been launched by the court-appointed administrators in charge of the case. Offers can be submitted until November 30, 2022, but the duo have already met with several candidates wishing to invest in a global takeover of the company.
"We want a short procedure to move forward quickly. We are very well surrounded and are in discussion with many players with very different profiles. The objective is to make a deal before the end of the year, to present our winter 2023 collection in January," says Broudehoux. "People come to us and understand the Roseanna project. The desirability of the brand is intact, that reassures us!"
Over the past two years, Roseanna has reinforced its eco-responsible approach. The brand produces in Europe, 10% of which is in France, India and Tunisia. It has also tried its hands at pre-ordering, and been part of several fashion collaborations, including the latest with Pyrenex. A capsule that was unveiled in October, and according to Broudehoux is "a real success in wholesale and retail, in France and internationally. And other stimulating collaborations are to come".
Wholesale, the backbone of the brand
Going forward, after changing hands, Roseanna intends to accelerate its online sales, which have doubled every year for the past four years. Above all the label intends to expand its business with multi-brand retailers, which is "the backbone of the brand," says Quaranta. "We have recorded wholesale revenue growth of 50% between 2021 and 2022, thanks to new account openings but also thanks to an increase of the average retailer basket. The brand entered Scandinavia this year, and has the potential to accelerate in the US, and to open up to China and South Korea."
After receiving support from Bpifrance in 2015, the company - which initially flourished in the swimwear niche - saw the investment company Vog, led by Dan Arrouas, enter its capital in 2019. According to the published tender, Roseanna has achieved an annual turnover of 5.7 million euros in the fiscal year ending March 2022, with a net loss of 973,000 euros.
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