With its financial situation deteriorating, UNGARO sells its flagship store location on Avenue Montaigne in Paris
Already in deep financial crisis and rapidly accummulating debt, the French fashion house of Ungaro is reported to be in talks with potential buyers for its flagship store location on Avenue Montaigne, a prime luxury retail location on the prestigious luxury shopping street. The dire financial situation has prompted to dismiss 22 full time staff, as it strives for restructuring its business. Céline Toledano, the daughter of Sydney Toledano (CEO of Christian Dior Couture) has been the creative director at Ungaro since July 2011, while Jeffry Aronsson who had been appointed CEO in June 2011 already resigned in December 2011.
Following the departure of its CEO, Ungaro informed retailer last week that Ungaro would not be able to deliver its spring-summer collection because of an internal reorganization. Ungaro confirmed it would not present a collection for fall-winter and canceled appointments for pre-fall, originally scheduled to take place last week. Middle Easter private investor Asim Abdullah, who acquired the brand from Salvatore Ferragamo in 2005, confirmed the reorganization but declined to comment on specific measures. Ungaro is reported to have accummulated debts over 350 million euros.