Apr
 30
 2019



Caroline

Hello,

Welcome back to this new edition of The Spin and keep it a day longer because May 1st is a holiday. There won't be any Spin on Wednesday. Today, we are looking at the British group Arcadia which is on the verge of insolvency. We are also interested in the possible sale of Kurt Geiger to a US fashion group. Meanwhile Chinese Alibaba has agreed to pay a big fine to resolve investors' lawsuit and Dior's 2020 resort show has taken us to Morocco. Enjoy the view. Best, Caroline.



markets

Insolvency looming. Arcadia's board members are meeting today to debate restructuring proposals. The British company which heads Topshop and Dorothy Perkins stores could fall into insolvency via a CVA (Company Voluntary Arrangement). More than 25 stores would be closed and other locations would be obliged to seek rent reductions. Britain's high street has been hit hard this year: Debenhams and Monsoon Accessorize are already closing dozens of stores.



Try on new shoes. Cinven, the Kurt Geiger's parent company, is exploring (paywall) the sale of that British footwear retailer to a US fashion group for the sum of £450 million. According to the Telegraph, Steve Madden, Capri, the owner of Michael Kors and Tapestry, Coach's parent have been involved in early discussions. Kurt Geiger's 320 stores and concessions are increasingly popular with influencers. Meghan, te Duchess of Sussex, has been spotted wearing its boots.



Asia calling. SMCP, the parent company of French brands Sandro, Maje and Claudie Pierlot has reported a 9% increase in sales to €274.6 million for the first quarter of 2019. The group, which is owned by Chinese Shandong Ruyi faces a challenging environment in France. Its sales fell 3.9% in its domestic market, but international revenue more than compensated for this weakness. In Asia, SMCP sales exploded +32.3%.



Where is the "it" bag? The handbag industry in America is experiencing declining sales. In the absence of "it" styles, sales of women's bags and small accessories have plunged (paywall) by 11% during the first quarter of 2019, according to the NPD group. Men's bags sales fared even worse: they decreased 19%. "Fashion is still important, says Beth Goldstein, the accessories NPD analyst, but the consumers are also asking what the product can do for them."





retail

Alibaba will pay. The Chinese giant Alibaba has agreed (paywall) to pay $250 million to resolve investors' lawsuit that accused the company of hiding important information prior to launching its Initial Public Offering. Alibaba's leaders had met with government officials to talk about counterfeit products sold on its platforms. They were accused of turning a blind eye to the sale of fake cigarettes, alcohol, luxury bags...which of course, affected the price of the stock, when it finally became public.



Only at C&A. The retail giant C&A has decided (paywall, translated by Google) to collaborate with the Danish company Bestseller. Only, a well known Besteller brand, will be sold in 10 C&A stores, in 40 square meters shop in shop. For this first experiment, C&A invites Only in Austria, the Czech Republic and Poland. C&A has suffered from competition of low cost retailers and websites. To improve its sales performance, the group is teaming up with outsiders, such as Mustang and costume retailer Deiters.





people

The athletic COO. Scott Jameson joins (paywall) Carbon38 as Chief Operation Officer in California. The startup, a tech centric activewear brand, is supported by Foot Locker. The giant retailer is financially invested in several sports companies such as Rockets of Awesome (children's apparel) and Super Heroic (Tactical play). Scott Jameson, the ex-COO of The Collected group, aims to bring process and structure to Carbon38 .





last

Hop on the Marrakesh express. Last night's Dior 2020 resort show stopped at Marrakesh. The designer Maria Grazia Chiuri explained her choice as evidence. Her predecessor, Yves Saint Laurent designed a coat named Marrakesh in 1960. The Moroccan city is in the very DNA of the brand, a symbol of luxury, globalism and culture. Furthermore, the Dior machinery likes to take special collections on the road. Following shows at Versailles, Cannes, the Blenheim Palace, the desert of California, here comes Morocco!







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