If fashion houses were truly houses, then the revolving door of that house would be the stakeholders. Currently, the biggest name up for grabs is French design legend Jean-Paul Gaultier. When the designer left his post as head women's wear designer for Hermes last year, the French label maintained a 45 percent stake in the JPG label. Now it seems not only is Hermes attempting to sell its shares, but the designer himself has put up a portion of his own 55 percent stake on the market as well. Reuters reported that Gaultier is looking to sell some of his shares to increase the brand's presence in Asia.
Initially, China's Li & Fung were reportedly eyeing at least the Hermes shares, as was Italian brand Cerruti who was apparently looking "very closely and seriously" several weeks ago, an inside source said.
But now it seems both the early contenders have dropped out, citing the expensive pricetag that Hermes is asking of over 100 million euros." They were interested but they are no longer now, not at this price," a source said. The fact of the matter is, the JPG label has not been profitable in some time, though the revenues are on the rise with 26 million euros in 2010, up from 23 million euros in 2009 and 13 million euros in 1998.
So perhaps Spanish perfumer Puig sees the potential in the label. Puig has now become the front runner in the acquisition stand, seeking to obtain not only the Hermes shares but Gaultier's personal shares as well in a possible attempt to control the entire label. Interparfums is apparently still in the race as well so time will only tell who get Gaultier!
Article Source: Reuters
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Tags: Alia Rajput, Asia, Cerruti, China, euros, front runner, HermÃ¨s, Interparfums, Italian, Jean Paul Gaultier, label, Li& Fung, luxury, market, perfumer, profitable, Puig, sell, Spanish, stake, stakeholders