Richemont Group close to sell Lancel and Chloe to Change Capital

World’s second largest luxury group, Richemont is reported to have received bids for its ailing French luxury leather accessories brand Lancel. Lancel made an operating loss of 10 million on revenue of 135 million euros in the year to end-June 2013, one person with first-hand knowledge of the matter said

Reuters confirms that several sources close to Richemont said the group was also considering offloading watch brand Baume & Mercier – the worst performing watches brand of the group, which also owns Cartier, Vacheron Constantin, Jaeger LeCoultre etc.

Regarding the sale process of fashion house Chloe, for which advisers have not yet been retained, one of the sources told Reuters: “It is not a question of if but a question of when.” “Change Capital made a non-binding offer,” one of the sources said.

Change Capital and Lancel declined to comment. Change Capital is a private equity firm set up by Luc Vandevelde, the former Carrefour and Marks & Spencer Chairman, which owns a majority stake in French ready-to-wear brand Paule Ka and previously invested in Jil Sander.

Asian conglomerate Swire, the largest shareholder in airline Cathay Pacific and distributor of brands Repetto, Chevignon and Columbia in Hong Kong and mainland China, is looking to team up with a private equity firm to make a bid for Lancel, the sources added.

Lancel, Fall Winter 2013-14