Gordon Brothers acquires Orsay – WWD

Gordon Brothers acquires Orsay – WWD

Gordon Brothers acquired the women’s lifestyle brand Orsay.

As part of the agreement, the restructuring and investment company also acquired the brand’s archives, related brands and other intellectual property from Orsay GmbH. In doing so, Gordon Brothers aims to maintain the Orsay ethos by also introducing new clothing, footwear and accessories.

Terms of the deal were not disclosed.

A request for comment on the value of the deal, as well as Orsay’s annual sales spike, hiring plans, and non-ecommerce growth strategies was not immediately met Wednesday morning.

In April, Boston-based Gordon Brothers received a $ 300 million grant from Canada Pension Plan Investment Board, increasing the capital base of the consulting, restructuring and investment firm to more than $ 1 billion.

In an effort to develop the business internationally and maintain Orsay’s existing franchises, a partnership was formed with commercial technology company Scayle. Scayle is providing e-commerce software to the brand so that it can continue serving shoppers in Europe. With the new configuration, Orsay also plans to use Scayle, which is the business-to-business unit and infrastructure behind About You, with its b-to-b and distribution services.

On Instagram, Orsay trumpets her “young, trendy and affordable clothes to express your femininity”. But the company has struggled over the past year. In March, fashion retailer Orsay, based in Willstatt, Germany, announced plans to terminate contracts for its 200 German stores. In June, a company spokesperson announced the closure of all branches and the layoff of approximately 1,200 workers. The pandemic’s severe dent on businesses and the impact of the war in Ukraine reportedly further depressed German consumers’ propensity to consume, Orsay’s spokesman said at the time.

Last fall, Orsay GmbH filed for protective shield proceedings due to impending insolvency in the first quarter of 2022. At the end of January, this turned into insolvency for self-management. At that time, the holding company of the French entrepreneurial family Mulliez handed Orsay to the restructuring specialists Gordon Brothers to try and save the German outposts.

Interestingly, Orsay was one of the first European companies to go online in Germany by launching a site in November 1998. An English version followed in the summer of 1999 and Orsay started shipping online orders to all EU countries. . In a 2000 interview with WWD, an Orsay executive said that the brand’s e-commerce increased fivefold in 1999 and was therefore comparable to that of the smaller Orsay store.

In a statement released Wednesday, Gordon Brothers president of brands Tobias Nanda said the company has been following Orsay’s story for years and has been impressed with its “powerful bond” with consumers.

Tarek Muller, co-founder and co-CEO of About You and Scayle, praised Gordon Brothers for “his enthusiasm for Orsay, flexibility and readiness to ensure its continued presence in the European market”.

Dating back to 1903, Gordon Brothers has invested in brands since 2003. The company has helped reinvigorate some famous and nostalgic labels such as Laura Ashley. Gordon Brothers also owns Nicole Miller, based in New York. The company conducts transactions and valuations worth more than $ 100 billion annually and provides short and long-term capital to clients. It is known to lend and invest in brands, real estate, inventory, equipment and other assets together and individually to offer clients liquidity solutions.

Through its acquisitions, Gordon Brothers’ approach often involves the expansion of licensees and franchises in order to strengthen e-commerce and develop more strategic wholesale and retail links.

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