Clergerie in difficulty, possible takeover by Kering?

Clergerie, an emblem of "made in France" craftsmanship in high-end shoe manufacturing, is experiencing an economic crisis. Since the end of March, the company, located in Romans-sur-Isère, has been undergoing judicial reorganization.

Being in financial deficit for several years, the company founded in 1981 by Robert Clergerie employs around 150 employees. If the company is in such a situation, it is due to the failure of a "conciliation procedure initiated to find in bonis solutions" between shareholders and creditors, as stated to Le Monde by interim manager Dominique Bernard.

There are multiple reasons for the financial crisis facing Clergerie. The Covid-19 pandemic has hindered exports, especially to China where the brand is highly appreciated. The situation in Ukraine has driven up the cost of raw materials and energy, increasing manufacturing costs. Finally, the decline in international tourism has reduced the influx of buyers into the brand's thirteen stores. Despite these difficulties, Dominique Bernard still stated that the company's revenue could reach around 20 million euros.

While Clergerie is seeking solutions, a potential acquisition by a French luxury giant like Kering could be considered. According to some rumors circulating in the business world, François-Henri Pinault, at the helm of Kering, may be interested in adding Clergerie to his portfolio of brands.

Kering could be inspired by the success of Christian Louboutin, who in 2021 received considerable financial support from the Exor Group, a holding company owned by the Agnelli family. The Agnelli family, which currently holds 24% of Louboutin's capital, invested 541 million euros in the company. This helped make Louboutin one of the most famous shoe brands in the world, with a valuation of 2.3 billion euros and 150 stores open in 30 countries.

If Kering proceeds with the acquisition of Clergerie, the luxury group could boost its sales, especially in the United States and China, where the French shoemaker already enjoys an established reputation. Clergerie has already faced challenging situations in the past: in 2011, the Chinese fund Fung Capital, which already owned Sonia Rykiel, acquired Clergerie from its founder and then sold it to the Mirabaud Patrimoine Vivant fund in 2020.