Oct 21, 2013
Kering ready to inject 300 million euro in La Redoute
Oct 21, 2013
PARIS, France - French luxury group Kering is ready to inject at least 300 million euros ($411 million) into its La Redoute unit as part of efforts to find a buyer for the loss-making mail order business, two sources close to the matter said.
Three potential purchasers have requested further information about La Redoute, though Kering has not yet received any firm offer, the sources told Reuters on condition of anonymity.
"Kering is ready to re-capitalise the company for an amount of at least 300 million," one of the sources said, adding that Kering also hoped any buyer would "also put some money on the table" to finance a restructuring of La Redoute.
HIG Capital is among the potential buyers, according to banking sources. Challenges magazine reported that OpCapita and real estate group Altarea Cogedim were interested.
Kering declined to comment, while no one was immediately available at HIG Capital.
La Redoute is the last of Kering's retail businesses, which it has been shedding to focus on luxury goods and sportswear. Its exit from the retail industry began with the disposal of department store Printemps in 2006.
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