Italian men’s outfitter becomes French

Italian men’s outfitter becomes French

Italian Brioni stands for a luxury men’s clothing label and goes now to the French luxury and sportswear group PPR

Brioni’s men’s – mostly formal – suits start at EUR 2000 (about USD 2760) and twice or three times this price when tailor made, but withstanding the fact that the company (74 stores) could not recover from the first financial crisis. However It common knowledge that men’s clothing is very much on demand and not so saturated as the women’s sector. PPR did not reveal the price tag for Brioni but it is estimated at around EUR 300 million (USD 413 million), including the takeover of Brioni’s debt in the order of EUR 90 million.

Brioni became a takeover target because of family feud and a strategy that was marked by U-Turns. In 2007 turnover hit a record of EUR 200 million but never returned to that sum as shown in sales figures for 2010 amounting only to EUR 170 million. The yearly production amounted to around 70’000 custom-tailored suits and PPR intends to expand to 200000 suits per year. So far of the sales stem from Europe and America and none from Asia. With this acquisition PPR is practically in ownership control of its entire production chain.

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