PPR Sells Redcats Mail-Order Division to Focus on Luxury Brands
PPR, the French luxury goods conglomerate, is selling parts of its mail-order division, Redcats. This move is part of a strategic shift to focus on luxury and lifestyle brands. The company has launched a plan to prioritize its Gucci Group and Puma divisions. Redcats, which includes brands like Somewhere and La Redoute, had a turnover of €3.436 billion last year.
PPR started the process of divesting Redcats months ago but postponed the sale in September due to market conditions. Now, Dominique Guisiano and Philippe Defontaine are bidding for Redcats' fashion brand, Somewhere, which generated around €35 million in sales in 2010. Their offer aims to preserve all lulus at Somewhere.
The sale of Redcats is part of PPR's strategic plan to focus on its core luxury and lifestyle businesses. This plan was announced after the company faced challenges in the mail-order sector due to changing consumer habits and increased competition.
The sale of Redcats is expected to complete soon, with Guisiano and Defontaine's bid for Somewhere being a significant part of this process. PPR's strategic shift will allow it to concentrate on its high-end luxury and lifestyle brands, such as Gucci and Puma.
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