Gordon Brothers has acquired the Orsay women’s lifestyle brand, files, related trademarks and other intellectual property from Orsay GmbH.
In doing so, Gordon Brothers aims to maintain the spirit of Orsay while introducing new clothing, footwear and accessories.
Terms of the deal were not disclosed.
During an interview on Wednesday, Gordon Brothers brand president Tobias Nanda said Orsay generated close to €500 million in sales before COVID-19.
In a joint interview with Gordon Brothers CEO of Brands Carolyn D’Angelo, he declined to comment on the investment in the acquisition.
In April, Boston-based Gordon Brothers received $300 million in funding from the Canada Pension Plan Investment Board, increasing the investment, restructuring and advisory firm’s capital base to more than $1 billion.
In an effort to develop the business internationally and maintain Orsay’s existing franchises, a partnership was formed with the trade technology firm Scayle. Scayle is providing e-commerce software to the brand so it can continue to serve shoppers in Europe. Under the new setup, Orsay also plans to use Scayle, which is the business-to-business unit and infrastructure behind About You, with its distribution and business-to-business services.
On Instagram, Orsay advertises her “young, fashionable and affordable suits to express your femininity.” But the company has struggled in the past year. Contrary to reports earlier this year that the Willstatt, Germany-based fashion retailer had announced plans to terminate contracts at its 200 German stores and lay off 1,200 employees, Nanda said Orsay has more than 190 stores in throughout Europe in franchises and wholesale accounts. The pandemic’s severe dent in business and the impact of the war in Ukraine had reportedly further depressed German consumers’ propensity to consume, Orsay’s spokesman said at the time.
Last fall, Orsay GmbH filed for protective protection proceedings due to impending insolvency in the first quarter of 2022. That turned into a self-administered insolvency proceeding at the end of January. At that time, the holding company of the French business family Mulliez passed Orsay to restructuring specialists Gordon Brothers.
Nanda said, “We bought the brand. What I will call the old company was liquidated and several of the company-owned stores were closed, mainly in Germany. But the franchisees continued to sell Orsay, continue to operate, and will continue to operate for years to come.”
Since then, a small group of employees have been hired with the current head count of less than 100 people. They focus on sourcing, design, marketing, online, and franchisees, in keeping with Gordon Brothers’ lean resource model. Most of those hires previously worked for the old company. “That core group is stipulating that design works on the brand similar to how it was before and serving our partners,” Nanda said. “Our goal is not to reinvent Orsay. Our goal is to continue the brand as it was before, in terms of aesthetics and DNA, but new in a way that makes economic sense.”
Interestingly, Orsay was one of the first European companies to go online in Germany, launching a site in November 1998. An English version followed in the summer of 1999, and Orsay began shipping online orders to all European countries. European Union. In a 2000 interview with WWD, an Orsay executive said the brand’s e-commerce grew fivefold in 1999 and was then comparable to that of Orsay’s smallest store.
Nanda noted that the franchise and e-commerce components of Orsay were very healthy, but the company-owned stores were less so. “That’s why we focus on e-commerce and franchisees in terms of our business model. But in terms of product, design and marketing, those things are done very well, so we will continue with them,” said Nanda.
Seeking to make Orsay a lifestyle brand similar to Laura Ashley or Nicole Miller, two companies owned by Gordon Brothers, D’Angelo said the plan is to dress the Orsay customer from head to toe and create lifestyle products for home. . That could translate to home decor, more accessories, a fragrance, or jewelry. With ongoing discussions with potential partners, the goal is to launch some new categories in the second half of next year, D’Angelo said.
Tarek Müller, co-founder and co-CEO of About You and Scayle, praised Gordon Brothers, which dates back to 1903, for “their enthusiasm for Orsay, flexibility and willingness to ensure their continued presence in the European market.”
Gordon Brothers has been investing in brands since 2003. The company has helped revitalize some familiar and nostalgic labels like Laura Ashley. Gordon Brothers also owns New York-based Nicole Miller. The firm conducts more than $100 billion worth of disposals and appraisals annually and provides short-term and long-term capital to clients. It is known for lending and investing in brands, real estate, inventory, equipment and other assets jointly and individually to provide liquidity solutions to clients.
Through its acquisitions, Gordon Brothers’ approach often involves expanding licenses and franchises to strengthen e-commerce and develop more strategic wholesale and retail linkages. Referring to Orsay, Nanda said: “Our goal is to continue along the lines of what has been before. If we do our job right, the woman who bought Orsay last year shouldn’t know the difference. She will continue to see the same categories, the same items and the same styles when she walks through an Orsay store.”
As part of a geographic growth strategy, the brand aims to generate sales in France, Spain, Italy, the UK, Panama, Argentina and Brazil, he added.
Source: wwd.com