Europe 1 with AFP 9:40 a.m., January 19, 2024

Kookaï, Naf Naf, Pimkie, Gap France, Don't Call me Jennyfer... The year 2023 was particularly disastrous for many ready-to-wear brands in difficulty, but professionals have better hope for 2024.

It all starts in September 2022, with the Camaïeu explosion.

The consumer brand born in 1984 in Roubaix was suddenly placed in liquidation, leaving some 2,100 employees in the lurch and the mid-range fashion sector stunned.

Since then, difficulties have continued for many iconic brands in French city centers: Kookaï, Naf Naf, Gap France, André, San Marina, Minelli, Kaporal, Don't Call me Jennyfer, Burton of London, Du Pareil Au Even, Sergeant Major, Princess Tam Tam, Comptoir des Cotonniers, Orcanta...

Retakes that go wrong

Some companies cut staff and close stores, like Pimkie, others are placed in receivership, like Naf Naf, and, more rarely, liquidated, like San Marina.

But they are not all victims of the same causes.

There are brands that have already been taken over and have suffered from poor management, according to experts.

Mentioned are the companies of the galaxies of businessmen Michel Ohayon - Camaïeu, Galeries Lafayette, Gap France, Go Sport - or Thierry Le Guénic - Burton of London, Orcanta, Maison Lejaby.

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For Yann Rivoallan, president of the Women's Ready-to-Wear Federation, "there is real training work to be done with (judicial) liquidators, buyers and agents to better understand the fashion ecosystem."

End of euphoria

Concerning other companies, “to understand, we have to go back to the summer of 2022”, recalls Xavier Bailly, partner of the consulting firm Eight Advisory.

After a period of "very dynamic euphoria (...)" marked by the end of Covid and the end of supply disruptions, the brands have placed "significant orders", explains the specialist in business restructuring.

However, at the end of 2022, inflation is rampant, consumption declines and brands find themselves with overstock, loans taken out during the pandemic that must be repaid and an increase in the minimum wage for its employees of 9% over one year, continues- he.

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At the same time, many players with “very low prices” are positioning themselves, notes Gildas Minvielle, director of the economic observatory of the French Fashion Institute.

From "ultra fast fashion" such as SheIn, "with very strong quality of execution thanks to artificial intelligence", according to Yann Rivoallan, to the rise of second hand, "the biggest growth on the market", recalls Mr. Bailly.

Without forgetting the distributors, “like Aldi or Lidl”, who are interested in fashion, notes Gildas Minvielle.

But for him, “the structural causes of this crisis existed before the pandemic”.

Since 2007, purchasing power has stagnated, making buyers more cautious.

And, between 2013 and 2015, "we had to invest in e-commerce rather than stores", a shift that not all brands made.

And today, "consumers consume differently", reducing their spending "either by necessity or by choice" by betting on sobriety, continues Gildas Minvielle.

“Not dead at all”

“The reality is that these brands are not dead at all”, liquidations being “extremely rare” and collective procedures “very rarely meaning the cessation of activity”, adds Xavier Bailly.

Mid-range brands must “reduce perimeters”, regenerate traffic in stores and “find the right price equation”, according to Xavier Bailly.

“Sergeant Major, Du Pareil Au Same, Don’t Call Me Jennyfer will leave again,” he says.

Even Camaïeu, bought by Celio, should rise from its ashes with a new collection in September 2024.

Yann Rivoallan thinks that “there will still be legal redress in 2024” but the winter sales have “rather” started well and “it can start again”.

Mid-range brands, "there won't be dozens left but there will always be a segment" for a "quality product, close to home", with "assisted sales and nice stores", he declares. -he.