Companies residing in the world of fashion have been taking quite the financial hit lately. So what seems to be the favoured problem solver? Consolidation.
As reported yesterday, Massenet will be selling her 18% share of the online luxury boutique to Richemont, who previously held a 30% stake in the company. Other investors are following suit, and Richemont will reportedly own 70% of the company after the deal is done.
With Massenet reported to receive approximately £50 million ($75 million USD) in the deal and Richemont given the chance to one up LVMH with its acquisition of the market leader in online luxury and high-fashion sales, both parties are quite happy.
We can understand why!
– Alexa P Gray