FT : Stellantis to invest more than €30bn in electric vehicles

Stellantis to invest more than €30bn in electric vehicles
Carmaker plans to open five battery factories across Europe and US by end of decade

Stellantis will spend more than €30bn over the next four years developing electric cars, underlining the investment the auto industry is having to make as combustion engines are phased out.

In the first major announcement on its electric strategy since it was formed by the merger of France’s PSA and Fiat Chrysler this year, Stellantis laid out plans to open five battery factories across Europe and the US by the end of the decade.

The world’s sixth-largest automaker said it would introduce a range of cars that can drive up to 500 miles on a single charge. With brands including Jeep, Peugeot, Vauxhall and Ram, Stellantis wants 70 per cent of European sales and 40 per cent of US sales to be of low-emission vehicles by 2030.

Four out of five of these would be battery electric cars, with the rest plug-in hybrid models, chief executive Carlos Tavares said on Thursday.

The company, which is one of the most profitable in the segment, aims to achieve “double digit” operating margins from electric sales by 2026.

While its battery car margins from sales today were equal to its combustion vehicles, finance boss Richard Palmer warned of a short-term squeeze as government incentives that helped bring prices down were unwound.

The electric plans from Stellantis have been keenly anticipated because the €50bn merger brought together two companies at opposite ends of the industry’s electric spectrum.

PSA has already invested in electric vehicles, helping the group meet the EU’s CO2 targets last year. FCA, however, met them only after paying Tesla hundreds of millions of euros for carbon credits. The Italian-American group is considered the industry’s laggard on electric technology.

The ambitious plan by Stellantis to invest €30bn by 2025 echoes that of rivals. Volkswagen, the group’s largest competitor in Europe, is spending €35bn on electric vehicles, while Ford, which competes with Opel in Europe and Ram and Jeep in the US, this year raised its spending targets to “more than $30bn” by the end of the decade.

Among the initiatives and targets set out on Thursday, Stellantis said Opel and Vauxhall would sell electric cars in Europe only after 2028, two years earlier than arch-rival Ford. Opel will also launch as an all-electric brand in China, a market where Stellantis is weak.

Jeep, historically a major profit generator for Fiat Chrysler, promised to release a battery model in every segment by 2025, while its Ram brand will produce a fully electric pick-up truck in 2024.

Stellantis said it planned to build four manufacturing platforms that would allow it to make battery versions of the vehicles in its range, which run from small hatchbacks to large pick-up trucks. The models will be able to run from 300 miles to 500 miles on a single charge.

The company also aims to have solid state batteries, which allow longer ranges and faster charging, in some vehicles from 2026, a date in line with ambitions from rivals such as Toyota and BMW.

Tavares said he had agreed with the Italian government to establish a third European battery plant in Termoli, Italy, in addition to plants in northern France and Germany that PSA will run in a joint venture with Total.

Stellantis shares fell 3 per cent on the day to close at €16.05.

FT : Natixis/BPCE: au revoir, not adieu from funds giant

Natixis/BPCE: au revoir, not adieu from funds giant
Going private will spare one of Europe’s largest asset managers further shaming public scrutiny

Natixis, a niche investment bank combined with a large asset manager, is shuffling off the public stage. On Thursday, Laurent Mignon, boss of BPCE, announced its holding in its listed subsidiary had risen to 89 per cent. The French co-operative bank should exceed the threshold for squeezing out minority shareholders on Friday.

The curtain is falling on a lacklustre performance. Natixis listed on the Paris stock market in December 2006 at €19.55 per share. BPCE’s €3.7bn offer to buy out minority shareholders priced the stock at €4.

That was equivalent to tangible book value and therefore a reasonable offer. The company was only set to make a 9 per cent return on tangible equity in 2022, according to Barclays.

Going private will spare Natixis further shaming public scrutiny. The group suffered large losses on derivatives and on H20, a subsidiary linked to controversial financier Lars Windhorst. BPCE will restructure the business away from the spotlight, bringing the insurance and payments businesses within its own retail division.

The asset and wealth management arm has hefty assets under management (AUM). For these, it targets compound organic growth of at least 3 per cent a year in the four years to 2024. Ominously, given recent history, it plans to expand in “high-alpha” strategies. Sustainable investment and impact investments will offer another modish focus, supposedly set to account for half of AUM by 2024.

Going private theoretically deprives Natixis of equity ammunition for acquisitions. In reality that currency would have had little appeal given the group’s chequered history.

Paradoxically, Natixis is one of Europe’s largest asset managers. In this industry scale generally brings success — unless a decentralised model limits brand recognition. That model also makes cost control harder at a time when margins are falling.

A worldwide shift into passive investment has put consolidation pressure on active managers. Natixis’s fund management arm could participate more easily if it was spun off as a standalone business without the dragging anchor of the investment bank.

FT : Kering buys high-end Danish eyewear brand Lindberg

Kering buys high-end Danish eyewear brand Lindberg
French luxury group has hunted for acquisitions as investors question its dependence on Gucci

French luxury group Kering has acquired Danish eyeglass maker Lindberg for an undisclosed price and signalled its openness to further deals to build up its fast-growing business in eyewear.

Roberto Vedovotto, who runs Kering Eyewear, said in an interview that the Lindberg acquisition showed that the group was serious about investing in the high-end eyeglasses market that he estimated was worth about €4bn in retail revenue annually.

“We’ve grown very rapidly in recent years,” he said. “If the right opportunities come up with brands we are passionate about, then yes we are interested in doing further acquisitions.”

Luxury groups have long expanded into eyewear, beauty products and fragrances despite their much lower margins because such brand extensions allow them to attract new, often younger consumers who cannot afford a €5000 handbag now but may later.

Kering earned €487m in sales from its eyewear business last year, down from €600m before the pandemic in 2019, so it remains a small part of the €13.1bn in revenue it reported last year. Lindberg’s revenues were around €100m in 2019.

The Lindberg acquisition comes as Kering has faced questioning from investors over its acquisition strategy, with some regarding it as too tentative and slow given the luxury group’s low debt and strong cash flows.

Chair and chief executive François-Henri Pinault said in February that Kering would look at possible mergers and acquisitions but that such moves were not indispensable given the strong organic growth within the business.

Critics argue that Kering is overly dependent on its biggest brand Gucci, which generates roughly three-quarters of group operating profit and suffered a bigger hit in 2020 than rivals like Hermes and LVMH-owned Louis Vuitton. Acquisitions could help diversify the group and help it keep up with LVMH, which did its biggest deal ever last year when it bought US jeweller Tiffany.

Kering has been rumoured to have approached smaller luxury rivals Richemont and Moncler in recent years.

Kering has not made any large acquisitions in the past decade, although it has been an active seller since 2000 as it remade itself from a retail and apparel conglomerate into a pure luxury player by selling assets like furniture seller Conforama and its stake in sports brand Puma.

One sector banker said that Kering was feeling some pressure from investors to act on the acquisition front “which can make doing something even harder.” In luxury, there are a limited number of target companies and many are family-owned, the person added.

In eyewear, Kering had been building the business on its own before the Lindberg deal.

It created the division in 2014 out of a desire to move away from the traditional model where luxury brands license out their names to specialised glasses manufacturers who design the frames. Instead Kering decided to bring the work in-house and now creates frames for its own brands like Gucci, Saint Laurent and Balenciaga.

In 2017 Swiss group Richemont took a minority stake in Kering Eyewear and hired it to make frames for its brands such as Cartier, Chloé, and Montblanc.

With Lindberg, it will acquire a family-founded brand whose frames are made out of titanium and can be customised in terms of materials, shape, colour and even nose pads. Celebrities like designer Giorgio Armani, singer Elton John, and actress Meryl Streep have been spotted sporting Lindberg eyeglasses, which retail from €300 to €2,000.

“This is a dream come true for us because we are acquiring the best independent eyewear company in the industry,” said Vedovotto.

FT : Why the new post-Brexit ‘UKCA’ standard is proving such a headache for indu

Why the new post-Brexit ‘UKCA’ standard is proving such a headache for industry
Plus, growing signs of labour shortages as government prepares to fully reopen the economy

Brexit is often explained by its proponents as first and foremost an expression of sovereignty — taking back the right of the UK to make its own laws and not to be controlled by “faceless bureaucrats” in Brussels.

As a political narrative, this has proved successful for Boris Johnson, but it has led the UK into some very counterproductive places, as an approach that prioritises sovereignty above all else excludes many layers of co-operation with the EU, even when they make practical sense.

One of these which is causing particular pain to industry at the moment, but does not receive much publicity, is the transition from the EU’s “CE” mark that certifies the safety of all manner of industrial products for the EU market, to the UK’s new homegrown equivalent, the “UKCA” standard.

At the moment, as Sam Lowe, the trade expert at the Centre for European Reform, explains, this is essentially a duplicative process because UK standards follow EU standards in the “vast majority of cases”. 

(This is because the UK’s BSI standards organisation has remained a member of the European Standards Organisations, which co-ordinates standards in the EU, and co-operates with the European Commission via an agreement, but is not itself an EU body.)

You might think, therefore, that this expression of UK sovereignty (a UK version of a CE mark, for its own sake) is an example of what Lowe calls “performative divergence”, ie of little actual consequence but important to show that Brexit has delivered concrete change.

Alas not. For a number of UK industries that use safety critical products (lifts, cars, medical devices for example) the transition to UKCA marks is a massive and unnecessary headache, for a number of reasons.

Firstly, UKCA marks must be handed out by UK-based testing or “Approved” bodies and there is not enough capacity in many sectors to handle the applications, even if they are essentially “cut and paste” of CE approvals.

Nick Mellor, the managing director of the Lift and Escalator Industry Association describes the shortage of UK approved bodies in his sector as “critical”. There is currently only one organisation in the UK able to undertake certification for lift safety components, but “thousands” of parts that need certifying. 

The system also throws up unresolved anomalies. So for example, if I service a 10-year-old German lift in Birmingham or Brighton, does the replacement component (that was always CE-marked) now need to be UKCA-marked after January 1? If that is the case, it may not even be possible to source the component. Industry is still not clear on this.

The Construction Products Association has issued similar warnings, saying the UKCA process could add to existing shortage problems, highlighting capacity issues around high-spec glass and building adhesives — and, often, it only takes one missing product to hold up an entire project.

It is all nerdy stuff, but according to the engineering services alliance Actuate UK, in another product area — “heat emitters” — where there are eight EU “notified bodies”, the UK equivalent would need to complete “64 years’ worth of retesting” in less than seven months to certify all EU products for the UK market.

Which brings us to the second issue. This does not just impact UK businesses. EU businesses placing goods on the UK market need a UKCA mark, meaning UK businesses need to convince their EU suppliers to do the paperwork. For some the size of the UK market will be worth it; for others, not. That could impact UK supply chains.

Thirdly, there is a legal issue. After January 1 UK companies placing EU products on the GB market (that will now bear a UKCA mark) must take legal responsibility for those products — and vice versa for EU companies putting GB products on the EU market. So companies on both sides of the Channel are now also having to weigh up legal issues, and draw up agreements with EU suppliers over what happens if a product from the other jurisdiction is subject to court action.

We’re not remoaners.

Russell Beattie, Federation of Environmental Trade Associations chief
And all of this before the UK does actually diverge. When that happens, industry will face the cost of two separate testing regimes for companies that sell in both EU and UK jurisdictions, which could lead to some tough decisions on the viability of some products for the UK market.

All of which explains why there is a rising chorus of industry trade groups calling for the government to extend the January 1 2022 deadline by which all CE-marked goods on the GB market must carry a UKCA mark in order to be legal.

The government has done this already for a small group of products, such as marine equipment and medical devices, giving those companies until the end of June 2023 to comply, which sets a precedent that other industries now want followed.

Russell Beattie, the chief executive of the Federation of Environmental Trade Associations, is at pains to say that industry does not want to come across as “remoaning”, but as everyone comes out of the Covid-19 crisis, he urges the government to be pragmatic. “We’re not remoaners. We need some sensible discussion about the consequences,” he added. 

As Tim Figures, a former senior business secretary adviser during the Theresa May era who now advises the Boston Consulting Group, observes, diverging from the EU regulatory framework brings “little or no benefit” in safety-critical industries that export to the EU like automotive, aerospace and chemicals.

Looking to the future, he adds, there may be some sectors — Artificial Intelligence, life sciences and possibly some financial services — that could benefit from divergence, but that does not help those grappling with apparently senseless bureaucracy now. 

The wider politics of all this is baffling. It is hard to imagine anyone in the “red wall” or pro-Brexit Tory shires ever itching for a UKCA mark when they voted for Brexit, or care a jot about it now. There is no obvious benefit to this process. It is not making UK products safer (they are the same EU standards as before) but it is very likely to make them more costly and less competitive overall. 

Which is why Lowe bets the government will have to move on this one, at least in the near term. “It wouldn’t surprise me if the UK decides to continue recognising CE marking well beyond the end of this year,” he says. 

But with logistical lead times on many products measured in months, not weeks, the time for the government to take that decision is approaching fast.


With Boris Johnson signalling his determination this week for the UK economy to reopen fully from August, there are growing signs of a labour market squeeze in industries such as haulage, construction and hospitality. Job vacancies are getting back to pre-pandemic levels.

A mixture of issues are contributing to this, including the rules around the furlough scheme which make some people reluctant to go back to work, long-term skills deficits as well as the ending of EU “free movement” which until January took up the slack. 

The government is under pressure to relax some of the immigration rules it brought in after Brexit, adding to the Shortage Occupation List, with the trucking industry leading the way in these calls, but other industries are also pushing.

This is tricky territory for the government which vowed “to shift the focus of our economy away from a reliance on cheap labour from Europe”, and focus on “investment in technology and automation”. They warned that “employers will need to adjust”.

While groups like the Road Haulage Association want short-term visas for drivers, that would set a precedent for other industries, and also upset unions like Unite, who believe higher wages and better working conditions would address the problem. As this week’s fudge over truck driver shortages showed, the danger is that halfhearted solutions do not fix the supply issues and leave everyone unhappy.

Ultimately this is a balance between keeping the trains (or trucks) running on time in the short term, and creating enough pressure to force the desired socio-economic adjustment. As we emerge from Covid-19, the next few months will be critical in seeing where the political needle actually sits on this one.

And, finally, three unmissable Brexit stories

As Loyalists across Northern Ireland prepare to light towering bonfires on Sunday night to commemorate the fires that helped guide William of Orange’s fleet to Carrickfergus, and victory, in the Battle of the Boyne, Laura Noonan writes fear of trouble is particularly acute this year. Even a temporary deal to ease the post-Brexit trading barriers between Northern Ireland and Great Britain has done little to calm tensions, she writes.

To the victor, the spoils. Boris Johnson won the referendum on UK membership of the EU just over five years ago, went on to win the leadership of the Conservative party in July 2019, reached a deal with the EU in October and won a decisive victory under the UK’s first-past-the post system in the general election of December. He has re-made his country. But has he remade it for the better or for the worse, asks Martin Wolf.

Half a year into this new era, Brexit has not fulfilled prophesies of short-term disaster. Yet if disruption has not been visible, it has been significant, says the FT’s editorial board, and although businesses are adjusting the signs point to an inexorable decoupling. Ways must be found to boost productivity and innovation, and reboot further education to equip workers with the necessary skills.

WSJ : Behind OPEC Deadlock, One Petro-State Looks to Non-Oil Future

Behind OPEC Deadlock, One Petro-State Looks to Non-Oil Future
U.A.E. wants to pump more, now, so it can invest in diversification before oil demand diminishes

Behind the standoff inside OPEC over whether to boost oil production is a key cartel member with a new strategy: sell as much crude as possible before demand dries up.

The United Arab Emirates’s strategy, as described by officials familiar with the matter, represents one of the most significant shifts in oil policy by a major Mideast petrostate. For years, the region’s oil-producing governments have said they aren’t worried about finding crude buyers far into the future. The U.A.E., which holds some of the world’s largest untapped crude reserves, is breaking from that orthodoxy, according to people familiar with the strategy.

“This is the time to maximize the value of the country’s hydrocarbon resources, while they have value,” said a person briefed on the U.A.E.’s strategy. “The aim of the investment is to generate revenue for the diversification of the economy, both for investment in new energy and, as importantly, in new revenue streams.”

The country isn’t worried about a sudden drop in demand, and expects to have buyers for its crude for decades. However, people familiar with the new tack say the country wants to pump and sell as much as it can now, when demand and prices are strong. Proceeds will help it wean its economy off oil.

“Market share is a key factor here,” said a senior U.A.E. oil executive. “We want a bigger market share, to monetize as much as we can from our reserves, especially when we have spent billions developing them.”

Spokespersons for the U.A.E.’s energy ministry and the Abu Dhabi government didn’t reply to requests for comment.
In recent days, the U.A.E. has been the lone holdout regarding a deal to boost crude output among members of the Organization of the Petroleum Exporting Countries and a group of Russia-led oil producers, together known as OPEC+. Last week, the rest of OPEC+ tentatively agreed on a deal to gradually unwind the deep cuts members enacted at the start of the pandemic. At the time, the group cut 9.7 million barrels a day of crude, amounting to about 10% of 2019 demand. The group has reinstated about 4 million barrels of that.
The U.A.E. has said it would agree to the plan to gradually release the rest only if it can boost its own output inside the group’s complex quota system. Saudi Arabia, OPEC’s de facto leader, has so far refused that concession, triggering a rare, public feud between the two allies. Neither side appeared to budge Wednesday, obscuring the outlook for oil prices.
For bulls, a no-deal means that OPEC+ keeps current production ceilings intact, even as economies reopen and demand grows. OPEC members say they are doing just that. Oil bears are betting a no-deal could lead members to abandon the system altogether and pump whatever they want.
After the group failed to resolve the deadlock earlier this week, U.S. crude hit six-year highs before retreating. Midday Wednesday in London, West Texas Crude was up 1.8%, around $74.70. Brent crude, the international benchmark, was up 1.6%, at above $75.60.

The spat has drawn U.S. intervention, amid rising gasoline prices there. Over the weekend and into this week, high-level U.S. officials have had conversations with officials from Saudi Arabia, the U.A.E. and other relevant countries, said White House spokeswoman Jen Psaki.

Amid a recent geopolitical divergence, the U.A.E and Saudi Arabia are diverging over how to respond to what many analysts, officials and executives say is a global transition away from high carbon-emitting fossil fuels. “The historic alliance is being tested,” said Christyan Malek, who is in charge of global energy at JP Morgan & Chase. “The rivalry is no longer just in the oil market, but for the post-oil economy.”

In the short term, both countries have boosted oil production, promising to put the proceeds into investment that will help them diversify away from fossil fuels.

In 2020, Saudi Arabian Oil Co., known as Aramco, said it planned to increase its sustainable oil production capacity from 12 million to 13 million barrels a day. A few months later, the U.A.E.’s Abu Dhabi National Oil Co. announced it would be spending $122 billion in part to boost its oil production capacity to 5 million barrels a day by the end of the decade, from about 4 million today.

The International Energy Agency, estimates that global oil demand will plateau in 2030, the year Abu Dhabi expects to hit its 5 million barrels a day goal.

The U.A.E.’s proven reserves—the oil it still has under the ground—is estimated at 98 billion barrels, according to the BP Statistical Review. At a 5-million-a-day rate, that would take more than 50 years to pump.

The U.A.E. is “in the race for market share ahead of peak demand,” said Robin Mills, chief executive of Dubai-based consulting firm Qamar Energy and a former manager in the Emirati oil industry. Unlike other OPEC members, Saudi Arabia and the U.A.E. have the opportunity to boost production capacity, he said.

Saudi Arabia has publicly said it isn’t worried about demand drying up and stranding its reserves. In June, Saudi Energy Minister Prince Abdulaziz bin Salman, at an OPEC+ press conference, was asked about a report by the IEA recommending halting investment in hydrocarbons to reach net-zero carbon emissions by 2050.

“I believe it is a sequel to the “La La Land” movie,” he said. “Why should I take it seriously?”

Challenges : Classement 500 Fortunes professionnelles de France: Malgré la pandé

Classement 500 Fortunes professionnelles de France: Malgré la pandémie, des riches encore plus riches

EXCLUSIF - Challenges dévoile l'édition 2021 de son classement des 500 plus grandes Fortunes professionnelles de France. Des Fortunes dont le patrimoine global a bondi de 30%, frôlant désormais des 1.000 milliards d'euros.

Quelle année! Le patrimoine professionnel global des 500 premières fortunes de France approche les 1.000 milliards d’euros, soit un bond de 30%. Avec un constat dérangeant: après dix-huit mois de pandémie, alors que le pays sort d’un choc économique majeur qui a fait reculer de 8% son PIB, les écarts se sont accentués à l’intérieur même de ce 26e classement, entre la moyenne des "500" et les tout premiers. Aujourd’hui, la fortune des 10 Français les plus riches est supérieure de presque 100 milliards à celle des 490 autres grandes fortunes françaises. Bernard Arnault, numéro un de notre classement (et actionnaire de Challenges), symbolise cet écart: son patrimoine a progressé de plus de 55 milliards en un an, pour atteindre 157 milliards. Cette hausse représente, à elle seule, un quart de la progression des valorisations de l’ensemble de notre palmarès! L’industrie du luxe aura été, cette année encore, le meilleur carburant pour faire fortune. Avec la Tech…

Retrouvez le classement complet Challenges 2021 des 500 plus grandes Fortunes de France à partir de 20h sur challenges.fr

Vingt licornes, pour Challenges
En effet, Challenges compte désormais parmi ses "500 Fortunes", une vingtaine d’actionnaires fondateurs de licornes françaises, ces start-up valorisées plus de 1 milliard de dollars. Seize (BlaBlaCar, Contentsquare, Dataiku, Doctolib, ManoMano, OVH, Veepee, Voodoo…) étaient déjà présents dans notre classement l’an dernier. Quatre font leur apparition (les fondateurs de Believe, Back Market, Ledger et Qonto) à l’occasion d’opérations financières. Tous enregistrent des bonds de 40 à 200% de leur valorisation en un an. Jonathan Cherki, le fondateur de Contentsquare, a vu la valeur de sa société (et les 20% qu’il en détient) tripler en quelques mois pour dépasser 2 milliards d’euros, après l’entrée au capital, en mai dernier, du fonds d’investissement du japonais SoftBank. En mai, également, le spécialiste de la vente de téléphones reconditionnés Back Market a levé 276 millions auprès de plusieurs fonds et s’est propulsé dans le cercle restreint des licornes made in France.

Plus généralement, tous les actionnaires des groupes tournés vers le marché mondial ont vu leur fortune progresser, alors que les spécialistes du marché domestique, à quelques exceptions près, ont souffert d’une conjoncture française morose. La distribution, avec ses centres commerciaux fermés pendant cinq mois et ses clients cloîtrés à la maison, a connu un vrai passage à vide. Il a entraîné la chute du textile, déjà malade depuis quelques années. Des groupes bien en vue sont allés au tapis, comme le réseau La Halle, en partie repris par le groupe Beaumanoir (Bonobo, Morgan, CacheCache…): "En dix ans, le marché a baissé de 15%, les charges ont augmenté de 20% et les ventes on line ont pris 15% de ce marché déjà baissier", détaille pour Challenges son PDG, Roland Beaumanoir (272e). D’autres secteurs, comme l’éducation, la finance et la santé ont plutôt profité de la conjoncture. Et ont hissé la fortune des actionnaires de leur entreprise les plus dynamiques vers des sommets.

Afflux d’argent
Mais pour cela il a fallu un autre carburant: l’argent. L’épargne des Français, pendant ces dix-huit mois, a gonflé et afflué dans les fonds, qui investissent dans les entreprises à l’occasion des centaines de cessions, de rapprochements, de rachats à crédit (LBO) et de transmissions qui se sont multipliés ces derniers mois. "Ces fonds ont levé beaucoup d’argent et n’ont aucun mal à en lever davantage, car ce type d’investissement offre un couple rendement/risque inégalé", explique Jean- Pierre Letartre, président d’IRD, un groupe qui a participé à plusieurs achats avec endettement (LBO) comme Satys Electric (connecteurs industriels), iDealwine (vente en ligne) et Smart (Applitech). "L’investissement dans les entreprises attire les capitaux grâce à son rendement très élevé, puisqu’il est compris entre 12 et 15% par an, net pour l’investisseur, c’est-à-dire une fois retirés les 5 à 6% de frais annuels", confirme Jean-Philippe Debas, PDG du conseil en opérations Equalis Capital.

Des proies et des chasseurs
Du coup, l’an dernier, ces fonds spécialisés ont levé 18 milliards d’euros: un record. Au point qu’ils ont eu du mal à investir ce "dry powder", cette poudre sèche, surnom que donnent les financiers à l’argent dont ils disposent et qui n’a pas encore été utilisé. Car le nombre des sociétés en vente demeure restreint. "Notre pays compte 140.000 PME et pourtant n’enregistre que 9.000 cessions d’entreprise par an – à peine 6% –, soit beaucoup moins que chez nos voisins", constate Fabrice Scheer, managing partner de la banque d’affaires Alantra, spécialisée dans le patrimoine des chefs d’entreprise. Le Covid, de ce point de vue, a rebattu les cartes… "Clairement, depuis un an, la chasse est ouverte, savoure Bertrand Folliet, cofondateur du réseau d’investisseurs Entrepreneur Invest. Il y a des proies – toutes ces sociétés affaiblies par la pandémie – et des chasseurs – les entreprises saines et tous ces fonds, qui ont un vrai savoir-faire et de l’argent." Or, souligne Thierry Renard, du family office Ritchee, "avec le Covid, beaucoup de chefs d’entreprise ont perdu des proches et ont compris qu’ils étaient mortels. Ils ont vu la vie différemment et ont commencé à être sensibles à l’idée d’une cession". On l’a vu, par exemple, avec la vente de Soufflet (4,9 milliards d’euros) au fonds InVivo, émanation d’un groupe de 192 coopératives. Jean-Michel Soufflet (64 ans), après avoir développé le négociant de céréales de Nogent-sur-Seine, dirigé par son grand-père puis son père, a dû céder les rênes, faute de successeur. Le contexte sanitaire n’a fait que renforcer sa conviction qu’il fallait assurer la poursuite du développement du groupe.

Gouvernance sous le choc
C’est aussi pour assurer une transition que la famille Pochettino a cédé, il y a quelques semaines, SCSP, le portefeuille de 13 hôtels et 1.300 chambres constitué au fil des ans autour de Lyon. L’acheteur, Extendam, est, bien sûr, un fonds. Spécialisé dans ce type de deal, il n’a pas hésité à débourser une centaine de millions d’euros pour acquérir ce groupe qui ne réalise que 30 millions de chiffre d’affaires. Anna Gozlan, associée fondatrice du multi-family office Kermony, voit dans la pandémie "comme un électrochoc pour la gouvernance des entreprises familiales: alors que d’ordinaire il était impossible d’engager la discussion sur les successions avec mes clients chefs d’entreprise, là, ce sont eux qui ont eu un rôle de locomotive et veulent engager la réflexion". Depuis déjà quelques mois, constate Nicolas Otton, directeur de BNP Paribas Banque Privée, "nous observons une accélération des changements de gouvernance dans les entreprises, et des transmissions entre générations, notamment au sein des structures familiales. Même les jeunes entrepreneurs cèdent leur participation plus rapidement et se repositionnent sur de nouveaux projets". Il faut dire que, pour décider les plus entêtés, les fonds ont, cette année, sorti les grands moyens. Ils ont frappé à toutes les portes: "Certains de mes clients ont reçu des sollicitations de la terre entière, avec des promesses de l’ordre de l’eldorado", s’inquiète François Mollat du Jourdin, fondateur de MJ& Cie, un multi-family office.

Inflation des valeurs
Les fonds ont aussi poussé les enchères à un niveau inégalé: "C’est du jamais-vu", confirme Louis Godron, le PDG d’Argos Wityu, une société qui publie chaque année une étude des multiples de valorisation des sociétés qui ont fait l’objet d’une opération de cession ou de rapprochement. Ces multiples ont atteint des sommets. En moyenne, les acheteurs ont payé leur cible l’équivalent de 11,3 fois sa rentabilité opérationnelle (Ebitda): en 2009, au sortir de l’autre grande crise du XXIe siècle, c’était seulement 5,7 fois. Autrement dit, en une décennie, les valorisations ont doublé. "Rien que cette année le ticket moyen est passé de 200 à 300 millions d’euros", s’étonne Louis Godron. Le fonds américain Silver Lake n’a pas hésité à offrir beaucoup plus, environ 500 millions, pour racheter Silae, l’éditeur aixois de logiciels de paie pour PME créé par Jean-Paul Bagou, qui n’affichait pourtant que 40 millions de chiffre d’affaires… Quant au fonds Eurazeo, il a accepté de payer autour de 700 millions (20 fois l’Ebitda) le spécialiste d’aromathérapie et d’extraits végétaux Aroma Zone. Pas mal pour une (belle) PME réalisant une centaine de millions d’euros de chiffre d’affaires. Mais le dossier réunissait deux caractéristiques précieuses aux yeux des fonds: des perspectives alléchantes de croissance et une transition dans le management. Le groupe, créé en 1999 par Pierre Vausselin, est en effet désormais dirigé par ses deux filles, Anne-Cécile et Valérie…

WWD : Inside Balenciaga’s Couture Comeback

Inside Balenciaga’s Couture Comeback
François-Henri Pinault, Cédric Charbit and Demna Gvasalia sit down with WWD ahead of the house's high-fashion debut.

“I would say couture is probably the coolest thing that fashion can have a conversation about today.”
Few would argue with that declaration by Demna Gvasalia, creative director of Balenciaga, who is preparing to today unveil the first Balenciaga couture collection in 53 years during a fizzy high-fashion week in Paris that has seen the return of live runway shows, international editors — and even black-tie dinners.
Look out for everything from couture-caliber T-shirts and jeans — the latter made of hand-loomed Japanese denim held together with sterling silver rivets — to fully embroidered ballgowns from Gvasalia, who recently wiped Balenciaga’s Instagram account clean to make way for a rarified collection that will surely set the fast-growing house on a new course.

“Bringing couture into the modern context and communicating it to the current audience” is how the designer described his intent in an exclusive interview with WWD. “A lot of people don’t even know that Balenciaga is a 100-plus-year-old couture brand. They think it’s a brand that started with the Triple S sneaker. So in a way, it’s kind of educational, but also putting in the spotlight what is the most important thing about fashion, and to me couture is the purest expression of that.”
It’s also a symbolic moment for Kering, the French group that owns Balenciaga, for it’s the first of its luxury brands to venture into the couture arena — and with what promises to be a daring and disruptive approach, echoing the famous founder Cristóbal Balenciaga, often called the couturier’s couturier.


François-Henri Pinault, Demna Gvasalia and Cédric Charbit Kuba Dabrowski/WWD
“It’s not about looking backward, it’s about projecting fashion into the future, which is what couture has always done,” said François-Henri Pinault, chairman and chief executive officer of Kering, whose holdings also include Gucci, Saint Laurent, Bottega Veneta and Alexander McQueen. “Haute couture contributes to the timeless appeal of a fashion house, and particularly one like Balenciaga.”
In an exclusive interview, the luxury titan lauded couture — unlike ready-to-wear, grounded in the now — as the ultimate expression of creativity in fashion, free of the constraints of industrial production, budgets and the merchandising department, allowing new ideas, shapes and artisanal techniques to emerge.
Pinault noted that Cristóbal Balenciaga “was very avant-garde. He experimented with silhouettes, and studied their architecture.”
“Taking creative risks is always difficult. It’s something very personal,” he continued. “Yet Demna dares, after all that he has already done for the house, to continue to evolve his point of view, and to take creative risks. It’s courageous, and I treasure that.”
Pinault described a “phenomenal success” at Balenciaga since Gvasalia arrived late in 2015, partnering with CEO Cédric Charbit to revitalize the house with cutting-edge fashion shows, collections and communications. He noted that the brand powered ahead in 2020 despite the pandemic, exceeding 2019 revenue levels.
He declined to give figures, though he had signaled in 2019 that the brand would surpass the 1 billion-euro threshold that year.
“The house is very, very far from reaching its full potential,” Pinault said, characterizing the return to couture as setting the stage for a new phase of development, and enriching the brand perception, especially among young generations who might not know the history of the house.


While Gvasalia is widely credited with igniting the streetwear craze in fashion, the designer has slyly been translating the founder’s trademark, sculptural silhouettes — barrel, balloon, sack, swing, hourglass — into modern garments like hoodies, trenchcoats and bomber jackets.
Pinault made it clear that a creative urge on the part of Gvasalia is what’s driving Balenciaga’s return to couture, one marked by a “profound respect for the codes of the house.”
Asked if other Kering brands might enter couture in the future, Pinault said: “It’s up to the artistic director of each house. There are many ways to express the creativity of a house.”
Balenciaga in Paris. Kuba Dabrowski/WWD
He noted that Gucci, for example, decided to launch high jewelry in 2019, and that Saint Laurent, although born as a couture house, became famous for pioneering and popularizing rtw in the 1960s.
At Balenciaga, Gvasalia came to Charbit with the idea to return the house to couture in 2019. He had just stepped down from Vetements, the brand he cofounded with his brother Guram that put him on the international fashion radar, to “pursue new ventures.”
In an interview this week, he said that development was “unrelated” to his decision to take Balenciaga into couture. “But I have to say that it did liberate my time and the fact of only concentrating on one thing gave me a bit more mind space.”
More than that, the unique heritage of Balenciaga “triggered so much curiosity” about couture in the designer. “I can relate to it, I want to learn from it, and I want to bring it my vision,” he said.
The process of “restarting” the couture took about a year of legwork, according to Charbit, a curly haired dynamo of an executive whose merchandising prowess has gelled well with Gvasalia’s creativity.
It involved recruiting seamstresses and tailors, couture sales and salon directors — plus lining up specialty suppliers, which include Massaro for footwear and Huntsman for tailoring, along with embroidery houses and other ateliers.
Still, Charbit characterized it as a reboot rather than a launch, with Gvasalia’s debut billed as the 50th Balenciaga couture collection. To be sure, the house inherits the archive of a designer often called the “King of Fashion” — along with a mythic name, brand iconography and a couture-like spirit that was upheld by previous Balenciaga design directors, including Nicolas Ghesquière and the late Josephus Thimister.


Given the brand’s legacy, it was “meaningful and significant” for skilled artisans to be approached by Balenciaga and “we had no difficulty creating a team that I think is world class,” Charbit said, though he declined to give names or detail their backgrounds.
Balenciaga restored its historic couture salons at 10 Avenue George V in Paris. Benoit Melet
Balenciaga had also retained its mythic address of 10 Avenue George V in Paris. Charbit and Gvasalia opted to give over this site, previously a Balenciaga boutique, and restore the couture salons to the way they were before the founder retired from fashion and closed shop in 1968. Original features include the elevator and stairs used by his illustrious clients, which included the likes of Bunny Mellon, Babe Paley, Millicent Rogers, Pauline de Rothschild, Marella Agnelli, Gloria Guinness and Mona von Bismarck.
“Demna has restored the brand’s legacy for ready-to-wear and now he’s about to do it for couture,” Charbit said in an interview. “A lot of our clients know the history of Balenciaga well, but we would like to make sure with this return to couture that the new generations understand the original creativity of the brand and the background of the house.”
While Balenciaga plans to pursue the “haute couture” appellation, which is governed by strict rules in France, it plans to show only one collection a year for women and men.
When Balenciaga announced in 2019 that it would return to the couture calendar, the house received more than 100 inquiries, and more have flown in since. Charbit said he is confident about receiving a healthy number of orders from the first show.
“We don’t have a marketing plan here. We do this as a creative mission and we do this for the future of the house,” he said. “Some of our existing retail clients have shown interest, and some of the existing couture clients have shown interest.”
He noted these could be traditional couture clients — or next-generation ones. “Just because you have an Instagram account or because you are taking selfies or because you wear sneakers doesn’t mean that you are not interested in couture,” he said. “Balenciaga has always appealed to people with a distinct, unconventional point of view.”
Moreover, “I think Demna is encapsulating the values that the customer feels strongly about today: scarcity, uniqueness, craftsmanship. Those are very modern topics,” Charbit said. “The more we have digital shows, the more we need physical shows for couture. The more we mass produce, the more we need one-of-a-kind products.”


Gvasalia said the obvious starting point for his couture debut was the archive of Cristóbal Balenciaga, so he could “understand the mindset of the founder.” But the coronavirus crisis, as terrible as it was, afforded Gvasalia more time to reconsider and tweak that approach.
“I started to question things,” he recalled in an interview. “I didn’t want it to be a tribute or look only like an homage to the heritage, because that would mean that I stay only in the past.”
And so the designer introduced his fashion vocabulary, his garment-focused approach and his inimitable way of twisting clothes into new forms and meanings. “I was not looking to find the Mona von Bismarcks of today,” he noted.
And so look out for a fusion of Balenciaga’s heritage “and the modern Demna wardrobe,” he declared.
Cristóbal Balenciaga did not make men’s wear, though he did have clothes made for himself, which have occasionally inspired Gvasalia. For his couture debut, the starting point was a tuxedo the founder owned. Gvasalia and his team, wearing white gloves, studied the garment — its sleeves, armholes and other details about its constructions.
A strong-minded designer who frequently bends and reshapes the fashion system according to his latest thinking, Gvasalia is now putting couture “at the top of the pyramid” of his creative vision, meaning the ideas and concepts introduced there will trickle down into other product lines.
“When you work on something like this, it’s so strong that it really impacts your general creative thinking,” he mused.
The bottom of the pyramid would be his “streetwear” garments, then a more fashion-forward offering on top of his main runway collections. “Then there is a kind of a classic wardrobe, which I’m currently working on, which includes also a businesswear line,” he revealed, describing the businesswear as “a more upscale type of wardrobe, with less twists and more qualitative, and probably more expensive than the other layers underneath.”
Given that he’s felt compelled to wear long coats or suits during fittings for the couture, and not his usual jeans and loose hoodies, Gvasalia allowed that Balenciaga’s high fashion will skew dressier, though “not in a red-carpet way at all.”


“It’s really something that people can wear in their daily life,” he said, describing, for example, a denim jacket that could be worn to the supermarket, albeit one that will still look “completely glamorous and sophisticated and couture” thanks to the make, architecture and attitude.
“It puts the person, the wearer, on a pedestal almost,” he said. “That’s what couture is for me. It’s taking a mundane type of product out of the contemporary fashion wardrobe and making it special, doing that through the material, through craftsmanship, through construction, through the silhouette and all of that.”
Indeed, Gvasalia is adamant that couture can save fashion from the the tyranny of “It” bags and shoes that are only a few clicks away and worn by everyone. His last Balenciaga rtw collection for spring 2022 was modeled by clones of artist Eliza Douglas, a critique on fashion’s obsession with trends and “hero” items, which diminishes individuality.
He’s also keen to preserve what he calls “the sacred art of making fashion — what a real tailored jacket look and feels like; what marvels haute dressmaking can produce — and to share that with younger generations.
“I have to say my favorite process in my metier is fittings, when there are scissors and pins, when we cut things and try to to sculpt the silhouette and the shape of the garment,” he said. “I’ve never enjoyed fashion as much as I have enjoyed doing this couture collection.”
The designer said he also relished the opportunity to get out of his comfort zone and learn new facets of fashion: designing embroideries, making hats and developing fabrics in exclusive colors.
Gvasalia sees haute couture as “very modern in its way of consumption” — the highest expression of buying less, but better: a powerful principle of sustainability.
“Instead of buying 20 T-shirts and bags and shoes, you put money aside for one year and you can buy one unique piece that maybe only two other people in the world have,” he suggested.
Balenciaga plans to livestream the couture show on its Instagram channel, which has 11.6 million followers, then add photographs of the looks. Going forward, the account will become “kind of like a TV channel. You know, you don’t always have the same program, so there will be a variety of things and they will appear and disappear,” the designer said.


Born in Georgia, Gvasalia studied international economics at Tbilisi State University before he enrolled in Antwerp’s Royal Academy of Fine Arts, which spawned the original Antwerp Six in the early ’80s. He graduated with a master’s degree in fashion design in 2006, later that year collaborating with Walter van Beirendonck, one of the six, on his men’s collections.
He joined Martin Margiela in 2009 after the Belgian founder retired, and was responsible for the women’s collections. In 2013, he moved over to Louis Vuitton, where he was senior designer of women’s rtw collections, initially under Marc Jacobs and briefly under Ghesquière. His Vetements project grabbed attention with its radically reconfigured, oversized streetwear and electric fashion shows, ultimately winning him the plum post at Balenciaga.
Now he is fashion’s newest couturier, and happier for it. “I have to say it’s really opened some new horizons in my creative expression,” he said.
Among those horizons is hats, for which he conscripted British milliner extraordinaire Philip Treacy.
“Hats are very important to the heritage of Balenciaga. For almost every collection, every silhouette he would have a hat,” Gvasalia marveled. “I’ve done a lot of baseball hats, but I never thought I’d work on actual hats, which is kind of a useless product, in a way. You don’t need it to survive.
“But I think the uselessness of hats is very appealing to me in the context of couture… It suddenly became such an obsessive point for me, which I enjoyed a lot.”

WWD : Renzo Rosso on Key American Market, M&As and Potential IPO Timing

Renzo Rosso on Key American Market, M&As and Potential IPO Timing
The founder of OTB continues to invest in the American market as the brands under the group's umbrella, from Diesel and Maison Margiela to Marni and Jil Sander, grow in the region.

MILAN — Renzo Rosso has come a long way since his first trip to New York more than four decades ago, but for the entrepreneur, the American Dream remains as real today as it was back then.
“I feel so close to the U.S., and it continues to be a priority for me. It is the country where I invest the most, with China,” said the founder and president of the OTB group, ticking off “James Dean, chewing-gum, jukeboxes and Coca-Cola” as some of the most fascinating and enduring idols from America in his mind.
“When I was 20 and first arrived at JFK [airport], I didn’t know a word of English, yet I felt immediately at home,” he said, smiling at the recollection and marveling at the fact that Diesel’s first show by Glenn Martens, presented digitally on June 21 for spring 2022, was livestreamed on Times Square.

The love is mutual, as North America, which accounts for around 10 percent of group sales, is expected to see a growth rate almost double of that forecast for the rest of OTB globally. In a three-year business plan, OTB is expected to report annual growth in revenues of 15 percent, with North America forecast to increase 27 percent year-on-year.
Investments totaling $250 million are planned in the next three years and “a big portion” of that amount is earmarked for the U.S., the entrepreneur said.


As part of the plan, expanding OTB’s retail distribution in the U.S. will be key.
The fashion group comprises Diesel, Maison Margiela, Marni, Jil Sander, Viktor & Rolf and a stake in Amiri, as well as production arms Staff International and Brave Kid.

Diesel RTW Spring 2022 Courtesy of Diesel
In addition to the relocation of a Diesel store in New York, five new units for the brand are set to open in the U.S. in 2021. In Miami, Diesel will open 143 contract apartments with Wynwood, which will be completed in a few years, as the work was stalled by the pandemic last year.
By the end of 2021, there will be 16 directly operated Diesel stores, four Marni and five Maison Margiela units in the U.S.
“It’s a magic moment in the U.S. now, since the arrival of President [Joe] Biden, stimulating the economic development; there’s so much energy and a desire to invest,” Rosso said. “Sales in all our stores in the U.S. are growing.”
Rosso was open about discussing Diesel USA’s Chapter 11 filing, although it’s “in the past,” he underscored, as the brand is now profitable. “I can say it with joy and I am very proud of this turnaround. I thank Stefano [his son and former Diesel USA chief executive officer] for the wonderful job he’s done in cutting costs, putting in place a more selective distribution that is in line with the brand by slashing the number of stores by 50 percent, and raising the profile of the label,” Rosso said. “If we had been a public company we could not have done that.”
Rosso has over the years hinted at the possibility of one day publicly listing the group and, asked to provide a possible time frame, he said that, given the three-year business plan, it would “not happen before three years.”
He touted “an already solid, well-structured and well-managed group,” admitting an IPO would also help provide “more transparency and solidity in the management of the company and in the generational shift.” Rosso has seven children, and he believes that, even if and when OTB will be a public company, the family should hold a majority stake.


Last year, as reported, OTB saw a jump in its online revenues and 20 percent growth at Maison Margiela — bright spots for the group, despite the effects of the COVID-19 pandemic.
In 2020, group earnings before interest, taxes, depreciation and amortization amounted to 176 million euros, down 7.3 percent compared with 190 million euros in 2019.
In the 12 months ended Dec. 31, OTB’s consolidated sales amounted to 1.31 billion euros, a 14.3 percent decrease compared with 1.53 billion euros in 2019, the year the company was back in the black.
Diesel, after a reorganization and repositioning of its retail and wholesale channels, continues to be a core business for OTB, accounting for more than 50 percent of sales.
The U.S. is where Diesel will stage an event in September to present a new line of sneakers, possibly in New York and Miami. Given the increasing importance of the category, Rosso has tapped five new designers dedicated to sneakers and a technician specialized in research and development “from one of the biggest sneaker companies around,” he said, without naming it.
Rosso trumpeted Martens’ creativity, which combined with Diesel’s techniques and know-how, he believes are a recipe for success. The Belgian designer, who joined Diesel as creative director last October, is launching a major project called Diesel Library, a genderless collection that will be introduced for spring 2022 as part of the group’s “For Responsible Living” sustainability initiatives — dear to Rosso and his son Andrea. The library will offer a wide range of evergreen and longer-lasting denim items, from pants and jackets to tops and skirts to name a few, with 50 percent of the overall denim collection having a permanent shelf life.
Rosso said the U.S. is a very successful market also for Maison Margiela, “the best in class,” and growing globally. There are five stores in the U.S. — one in Miami, one in Los Angeles, two in New York and one in San Francisco — and the goal is to open another unit in the U.S. by the end of the year.
A Margiela store will open in Toronto at the end of the year or the beginning of 2022.
The group in fall 2019 renewed John Galliano’s employment pact for Maison Margiela. The designer was appointed creative director of the brand in 2014 and since then, revenues at the Paris-based house have more than doubled.


The Maison Margiela boutique in London Henry Bourne
Also in Miami, Rosso plans to reopen the Pelican Hotel, which he first unveiled in 1994 and was closed for renovation in 2020. The work will allow the hotel to expand by two rooms, reaching 30. “The location had become too commercial, but now [that] the mayor has closed four blocks and changed the layout, it’s become the true heart of Miami and a pedestrian-only area,” explained Rosso. In a real Art Deco building, it was faithfully restored to reflect that period. “I expect to open it before Christmas and I am currently seeking a partner to manage it.”
Marni is also performing really well at both its Bal Harbour store — a relocation with a new concept earlier this year — and its Madison Avenue unit.
The first store with the new Marni interior design concept opened in London, followed by Paris, Shanghai and Miami.
At the end of June, a pop-up called Marni Marine at the Sunset Beach Hotel on Shelter Island, N.Y., opened “with a specific and unique concept and dedicated products,” Rosso said.
He noted that, thanks to creative director Francesco Risso, the brand’s “men’s wear is booming.” He admitted the creative change, when founder Consuelo Castiglioni exited in 2016, was a difficult moment of transition, “but now we are receiving offers to do capsules from brands, Marni is super cool.” To wit, Rosso extended Risso’s contract with Marni in December 2020.
In the U.S. next year, Marni and Margiela will both be available on the omnichannel platform supported by Moon, an in-house designed operating model, which also fosters the customer experience. With a major investment, Moon was first rolled out for Diesel in the U.S., followed by Europe.
Rosso, one of the few Italian entrepreneurs who has openly spoken of building a fashion conglomerate, also talked enthusiastically about his latest acquisition, Jil Sander, which he bought from Onward Holdings Co. Ltd. in March. “Day after day, I marvel at how beautiful, clean and sophisticated is this product, and I have a beautiful rapport with [creative directors] Luke and Lucie [Meier],” enthused Rosso, who from early on has said he does not want to change the creative direction of the brand. “I am involving them more and more actively in the company, beyond the creativity, I want their opinion.”


The Meiers’ designs have translated into a strong business, as Rosso revealed the brand registered growth in sales last year compared with 2019, despite the pandemic.
As per the most recent results available, in the financial year ended Feb. 28, 2019, Jil Sander’s revenues totaled 11.3 billion yen, or $104 million.
Rosso is hoping to open a temporary Jil Sander store in New York’s SoHo with a new concept conceived a year and a half ago. By the end of the year, he is set on opening Jil Sander stores in New York and Shanghai.
“From our online sales, we see a lot of demand for Jil Sander in the U.S. and we want to be there physically,” he said.
Rosso is also now eyeing the acquisition of specialized manufacturers, a strategy that allows a company to “become more solid and build know-how,” he explained, while protecting Italy’s unique supply chain. He is looking at different areas — handbags and footwear producers, as well as firms specialized in washes and treatments.
His group has been supporting artisans through the CASH program, which stands for Credito Agevolato [facilitated credit] Suppliers Help launched in 2013. Rosso is part of the strategic committee of the Camera della Moda and is a Confindustria delegate, representing the Made in Italy supply chain in front of the institutions.
OTB also has a minority stake in American brand Amiri, which Rosso defined as a “beautiful” label, citing perennial lines in front of the brand’s Rodeo Drive store and plans to open two new stores, in New York and Las Vegas this summer.
As reported, Paulo Redeem, a Philadelphia-based fashion brand, has won the inaugural edition of The Amiri Prize, 2021, established by Mike Amiri, founder and creative director of his L.A. men’s and women’s brand, as an annual fashion incubator established to inspire undiscovered American fashion talent by offering a support system outside the current establishment.
“We are working well with Mike [Amiri] and helping to expand the brand in Asia. He can rely on the structure and our financial help. We are developing a business plan, but he doesn’t want to open too many doors,” said Rosso, noting that Amiri sales will double in 2021 compared with 2020. Amiri, who established his company in 2014, fuses authentic L.A. rock ‘n’ roll and street culture. He has diversified into new categories across fine tailoring, accessories and shoes, and presents his main collections biannually at Paris Fashion Week. In 2020, he opened his first retail store on Los Angeles’ Rodeo Drive.


As for wholesale, which at group level last year accounted for more than one-third of sales, Rosso is busy converting corners for his various brands into concessions with America’s main department stores, from Neiman Marcus and Bergdorf Goodman to Saks Fifth Avenue and Nordstrom.
“We are becoming partners, as department stores are becoming destinations more and more, working to have fewer sites but more beautiful,” he said.