PARIS (Reuters) - Restructuring clothing retailer Vivarte said on Wednesday it had reached a deal to sell its ready-to-wear Naf Naf brand to a consortium led by Chinese fashion company La Chapelle & Co (6116.HK).
Buyers also include Star Platinum Capital, a private equity firm which operates mostly in China, and consultancy firm East Links International, the statement said.
La Chapelle & CO, which was making its first acquisition outside China, said in a separate statement the deal was worth a total of 52 million euros ($64.4 million).
Vivarte, which faces competition from larger clothing retail chains such as H&M NHMb.ST, Kiabi and Primark, is restructuring its business to improve its financial situation.
“The deal we signed with La Chapelle & Co. guarantees Naf Naf and the employees with the best conditions of acquisition now, and the best perspectives of growth tomorrow,” Vivarte CEO Patrick Puy said in a statement
Vivarte sold its Kookai fashion brand, Pataugas shoes and Spanish shoes brand Merkal last year, and its Andre shoe brand earlier this year.
Naf Naf, with sales of 210 milion euros, has a network of 474 points of sales worldwide and employs about 1,200 people.
In 2017 La Chapelle had a a network of 9,448 points of sale, all located in China, and employed 37,554 people. In 2017, it generated about 1.2 billion euros of turnover.
Reporting by Dominique Vidalon, Pascale Denis; Editing by Leigh Thomas