PPR Said to Consider Bankruptcy Sale of Redcats’ Avenue Chain
PPR SA (PP), the French owner of the Gucci luxury brand, is considering selling Redcats’ Avenue clothing business in the U.S. as part of a bankruptcy filing for the brand, according to a person with knowledge of the plan.
Two private-equity funds are interested in as much as 60 percent of the chain’s stores, while a third fund would consider buying all of them, said the person, who declined to be identified because the plans are private. Avenue sells women’s clothing in sizes 14 and up in more than 500 stores. No decision has been made, and continuing the business is another option PPR is considering, the person said.
“The decision has been taken to focus Redcats USA’s growth strategy on the Internet and to sell this brand,” Emmanuelle Picard-Deyme, a spokeswoman for Redcats, said by e-mail. “Redcats is concentrating on finding a new owner for Avenue and will choose the best option for the brand and its development outside of the group.”
PPR rose 15 cents to 116.20 euros as of 11:47 a.m. in Paris. The company said in October that it would discontinue Avenue within a few months. The Paris-based company was in talks with investors interested in buying all of Redcats at the time, a month after it suspended a formal process to sell the division.
Redcats’ brands include La Redoute and Castaluna in Europe and BrylaneHome, KingSize and the Golf Warehouse in the U.S.
To contact the reporters on this story: Andrew Roberts in Paris at aroberts36@bloomberg.net; Lauren Coleman-Lochner in New York at llochner@bloomberg.net
To contact the editor responsible for this story: Kevin Orland at korland@bloomberg.net
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