Vivarte CEO calls off Chevignon sale, yet to decide about Besson; shareholders to exit within 24-36 months
French, privately owned fashion retailer Vivarte has called off the sale of its French unit Chevignon because of the lack of a “reliable” buyer, French daily Le Figaro reported citing Vivarte chairman and chief executive Patrick Puy. Puy added that the company had still to decide whether to dispose of its Besson shoe-retailing unit. Besson operates 150 stores and generated an EBITDA of EUR 40m on revenues of EUR 250m for the year ended August 2017.
Puy also denied that the company would divest its Caroll division.
Asked about the future of the company, he said that the main shareholders of the group could decide to exit their investment within two to three years. A sale or an IPO could then be considered.
Puy noted that Vivarte does not have any debt maturing before October 2019 and that the group would be able to refinance it. He said that the company, with debt of EUR 600m and shareholder equity of EUR 250m, does not burn cash anymore and is aiming for an EBITDA of EUR 108m in 2018.