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The French footwear brand Clergerie was placed in receivership on Wednesday 29 March by the Paris Commercial Court. Renowned for its know-how and refined models, the company has been going through a complicated period for three years. Why such a setback and what fate awaits the luxury manufacturer?
The French shoe industry has taken a blow after the announcement that Clergerie has been placed in receivership by the Paris Commercial Court. The manufacturer, based in Romans-sur-Isère in the Drôme region, failed to find “in bonis solutions” during the “open conciliation procedure” between its shareholders and creditors. A poor cash flow situation and a high level of losses also explain this sad outcome.
However, this is not the first time that the company founded in 1981 by Robert Clergerie has experienced a difficult phase. Through First Heritage Brands (FHB), the Chinese fund Fung Capital had taken over the Roman SME in 2011, before being sold in 2020 to the Mirabaud Patrimoine Vivant fund. The company was then in a “healthy financial situation”, according to the press release. French Legacy Group, a subsidiary of the fund chaired by Jérôme Espinos, had been entrusted with managing the label, with the ambition of making it “the benchmark of French luxury footwear”.
Geopolitical responsibility
Plagued by financial difficulties since 2020, Clergerie’s export sales have been plagued by the Covid-19 crisis, particularly in China.
“Despite strong growth, we were caught in a scissor effect”, explained to the Dauphiné Libéré Jérôme Espinos, president of French Legacy Group and Dominique Bernard, representative of the Mirabaud Patrimoine Vivant fund. “We have made significant investments, including opening stores in China, but the international situation has changed the game. A few months after we opened our boutiques there, China launched its zero Covid policy and was very strict on containment.”
In addition, due to the war in Ukraine, the company lost important customers in Russia. The latter has also slowed the influx of tourists to its stores (thirteen, including six in France) and increased manufacturing costs in its historic factory in Romans-sur-Isère.
“If we add to this inflation, the rise in the price of raw materials and delivery times, several of our markets have been impacted. We found ourselves with significant costs without having the revenue to match.”
Despite these obstacles, however, the brand maintained its revenue at 20 million euros.
Disposal plan and job cuts
According to Jérôme Espinos and Dominique Bernard, French Legacy Group, the main shareholder has no intention of getting rid of Clergerie. A court-appointed administrator has been appointed to draw up a recovery plan.
“Instead, we are looking for other shareholders who would like to accompany us in this project. It is possible that we will present a takeover project, but it will be up to the commercial court to study the different offers and make its choice according to the projects of each party.”
Last December, the buildings of the Roman factory were sold but this was not enough to improve the cash flow. Clergerie could thus opt for possible job cuts. Its factory employs about 120 of its 150 employees.
“The Clergerie brand not only has a very good reputation, but above all it has qualified, motivated employees with unique know-how. It is the last French shoe manufacturer.”
France has only a few other leather shoe factories left, such as Weston, in Limoges, Heschung, in Alsace, Repetto, in the Lot or Paraboot in Isère. Unlike leather goods, this industry does not benefit from the reputation of Made in France. Indeed, the major luxury groups prefer to use Italian workshops for their shoe lines.
Read also >The French Leather Industry unveils its foreign trade results in 2022
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The French footwear brand Clergerie was placed in receivership on Wednesday 29 March by the Paris Commercial Court. Renowned for its know-how and refined models, the company has been going through a complicated period for three years. Why such a setback and what fate awaits the luxury manufacturer?
The French shoe industry has taken a blow after the announcement that Clergerie has been placed in receivership by the Paris Commercial Court. The manufacturer, based in Romans-sur-Isère in the Drôme region, failed to find “in bonis solutions” during the “open conciliation procedure” between its shareholders and creditors. A poor cash flow situation and a high level of losses also explain this sad outcome.
However, this is not the first time that the company founded in 1981 by Robert Clergerie has experienced a difficult phase. Through First Heritage Brands (FHB), the Chinese fund Fung Capital had taken over the Roman SME in 2011, before being sold in 2020 to the Mirabaud Patrimoine Vivant fund. The company was then in a “healthy financial situation”, according to the press release. French Legacy Group, a subsidiary of the fund chaired by Jérôme Espinos, had been entrusted with managing the label, with the ambition of making it “the benchmark of French luxury footwear”.
Geopolitical responsibility
Plagued by financial difficulties since 2020, Clergerie’s export sales have been plagued by the Covid-19 crisis, particularly in China.
“Despite strong growth, we were caught in a scissor effect”, explained to the Dauphiné Libéré Jérôme Espinos, president of French Legacy Group and Dominique Bernard, representative of the Mirabaud Patrimoine Vivant fund. “We have made significant investments, including opening stores in China, but the international situation has changed the game. A few months after we opened our boutiques there, China launched its zero Covid policy and was very strict on containment.”
In addition, due to the war in Ukraine, the company lost important customers in Russia. The latter has also slowed the influx of tourists to its stores (thirteen, including six in France) and increased manufacturing costs in its historic factory in Romans-sur-Isère.
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The French footwear brand Clergerie was placed in receivership on Wednesday 29 March by the Paris Commercial Court. Renowned for its know-how and refined models, the company has been going through a complicated period for three years. Why such a setback and what fate awaits the luxury manufacturer?
The French shoe industry has taken a blow after the announcement that Clergerie has been placed in receivership by the Paris Commercial Court. The manufacturer, based in Romans-sur-Isère in the Drôme region, failed to find “in bonis solutions” during the “open conciliation procedure” between its shareholders and creditors. A poor cash flow situation and a high level of losses also explain this sad outcome.
However, this is not the first time that the company founded in 1981 by Robert Clergerie has experienced a difficult phase. Through First Heritage Brands (FHB), the Chinese fund Fung Capital had taken over the Roman SME in 2011, before being sold in 2020 to the Mirabaud Patrimoine Vivant fund. The company was then in a “healthy financial situation”, according to the press release. French Legacy Group, a subsidiary of the fund chaired by Jérôme Espinos, had been entrusted with managing the label, with the ambition of making it “the benchmark of French luxury footwear”.
Geopolitical responsibility
Plagued by financial difficulties since 2020, Clergerie’s export sales have been plagued by the Covid-19 crisis, particularly in China.
“Despite strong growth, we were caught in a scissor effect”, explained to the Dauphiné Libéré Jérôme Espinos, president of French Legacy Group and Dominique Bernard, representative of the Mirabaud Patrimoine Vivant fund. “We have made significant investments, including opening stores in China, but the international situation has changed the game. A few months after we opened our boutiques there, China launched its zero Covid policy and was very strict on containment.”
In addition, due to the war in Ukraine, the company lost important customers in Russia. The latter has also slowed the influx of tourists to its stores (thirteen, including six in France) and increased manufacturing costs in its historic factory in Romans-sur-Isère.
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