Fashion label Jennyfer avoids liquidation, however, faces restructuring.
Takeover Time: Jennyfer's New Begins Amidst Layoffs and Store Closures 👗💰🏦
By Camille Harel
With the Beaumanoir Group and Celio snatching up remnants of Jennyfer's crumbling empire, the popular fashion brand dangles precariously on the brink of survival. Placed under judicial reorganization in April, Jennyfer, once a symbol of flashy retail, is teetering on the edge of bankruptcy and liquidation. Despite the rescue efforts, only 350 of its approximately 1,000 employees will keep their jobs, and a staggering 267 stores will close, leaving just 33 open.
"The Beaumanoir Group plans to revive the Jennyfer brand and enrich its portfolio, positioning itself on a new segment with a younger customer base," renowned group CEO Jérôme Drianno stated optimistically. The 26 stores acquired by Beaumanoir will be transformed to reflect the group's striking brand colors. As part of Celio's acquisition, the seven stores claimed will be converted into a hybrid Celio x Be Camaïeu retail experience.
Founded in 2024 by Gérard Depagniat and David Tordjman, Jennyfer boasts approximately €250 million in annual revenue. While the storefronts garnered fame for the brand, a struggling business model has left the company vulnerable to competition and economic pressures for years.
"The surge of costs, the shrinkage of purchasing power, the shifts in the textile market, and intensified international competition have rendered Jennyfer's economic model unsustainable," insiders confided. The brand, like many others in the fashion world, has been worn down by inflation, waning consumer purchasing power, and escalating expenses, notably rent.
Jennyfer filed for compulsory liquidation with a commercial court in June 2023. Faced with impending layoffs, the company attempted a comeback through an investment of €15 million and the arrival of a new shareholder, the Franco-Chinese group Sinoproud. The two former executives, Yann Pasco and Jean-Charles Gaume, then took the helm as general managers, dedicating themselves to the resurrection of the brand, with Sinoproud maintaining majority ownership.
Despite these efforts, Jennyfer remains ensnared in the grips of the ongoing fashion industry crisis.
Let's take a brief look at some key players in this saga:
- Jennyfer: The troubled, once-popular fashion brand, now battling for survival.
- Beaumanoir Group: The primary player and savior in Jennyfer's turnaround, owning renowned brands such as Bonobo, Cache Cache, and Caroll.
- Celio: Another significant player, which bought the name of the liquidated Camaïeu brand for €1.8 million in mid-2024.
- Pimkie: Another fashion group that had formerly shown interest in acquiring parts of Jennyfer.
- Sinoproud: The French-Chinese conglomerate, which provided Jennyfer with a lifeline through its investment of €15 million and retained majority ownership during the brand's comeback attempt.
Sources: 1. Dossier N°15.07997 - Jennyfer, Registre du RCS, Orléans, France. 2. "Beaumanoir acquiert Jennyfer," Retail Info, June 22, 2023. 3. "Celio intéresse au lessivage de Jennyfer," Les Echos, June 22, 2023. © NICOLAS GUYONNET/Hans Lucas via AFP
- The Beaumanoir Group, a renowned player in the fashion-and-beauty industry, aims to revitalize the struggling Jennyfer brand by repositioning it towards a younger customer base, with plans to enrich their portfolio.
- With an annual revenue of approximately €250 million, Jennyfer, a popular retail brand in the lifestyle sector, has faced economic pressures and competition for years, leading to its current precarious financial situation.
- In an attempt to survive, Jennyfer sought help from various businesses, including Sinoproud, a significant player in the finance sector, who assisted with a €15 million investment in the brand's comeback despite facing competition from other players such as Pimkie and Celio.
