Santiago Cucci on IKKS: ‘It’s time for us to refocus on our flagship model’

In October, this was not essentially the frontrunner within the race to take over the IKKS Group. The French premium ready-to-wear specialist, proprietor of the eponymous model in addition to One Step and I.Code, attracted round a dozen bidders after being positioned in receivership firstly of autumn, together with the respective homeowners of The Kooples, Pimkie, Morgan and Caroll.

But within the house stretch, the duo of Michaël Benabou, co-founder of VeePee (then referred to as Vente Privée) and head of the funding firm Financière Saint James, and Santiago Cucci, a specialist in premium ready-to-wear and former head of the Levi’s and Dockers manufacturers, who for a time supported the management of Dutch label G-Star, strengthened their bid. The entrepreneur, a sports activities fanatic who is aware of the case nicely, having taken over as chairman of the HoldIKKS holding firm final yr, is aware of that competitions are determined proper up to the final minute. Despite the lack of virtually half the workforce, their provide, which safeguards 546 jobs and contains 119 immediately operated shops, received the backing of the group’s works council (CSE) and was formally accepted by the Paris Court for Economic Activities.

Just a few hours after the choice was made official, Cucci outlined his roadmap for IKKS to FashionNetwork.com.

FashionNetwork.com: What was your response to the announcement of the courtroom’s choice?

Santiago Cucci: We’re delighted to be taking up this iconic model. I feel it is a model that touches the hearts of the French. We all have a historical past with IKKS, whether or not from our youthful years or by means of our youngsters, usually tied to festive moments. This means there’s an entire era getting into maturity already very conversant in the model and feeling positively in the direction of it. That’s the capital we’re taking on right now. And this affinity extends nicely past finish customers: of the 118 associates we contacted, 116 mentioned sure.

FNW: Because past the 119 immediately operated shops, you had to persuade companions to come on board…

SC: Whether with associates, suppliers we had to renegotiate with, or throughout all the worth chain by means of to customers, I consider the entire ecosystem nonetheless holds the model in very excessive regard. Our job now’s to make the model fascinating, utilizing digital instruments that ship a powerful and seamless buyer expertise.

FNW: You’re maintaining 546 jobs, a lot of them in shops. What are the following steps, notably on the social entrance?

SC: As we’re taking up the corporate, on Monday I’ll be in Saint-Macaire to meet the workers who’re a part of the venture. We’ll be placing collectively a brand new administration group throughout most capabilities over the following few weeks. I would really like to thank the administration group, who’ve carried out their utmost to steer the corporate by means of tough circumstances in recent times. In our takeover plan, we now have dedicated to investing 700,000 euros to purchase the model’s property and inventories, and 700,000 euros to contribute to the PSE. Matters regarding those that are leaving shall be dealt with by the court-appointed liquidator. However, we intend to rehire just a few individuals to assist safe the trail ahead over the approaching months.

FNW: In your plan, quite a few actions have been to be discontinued. Where are you going to focus your efforts?

SC: We’re refocusing on IKKS’s grownup enterprise. We’re placing the junior enterprise on maintain. Even although that’s the brand’s roots, in France the main participant within the junior market is the second-hand phase. We have to settle for that actuality. But these customers who have been juniors at the moment are adults and have already got a relationship with the model. At the identical time, the group had been managing I.Code and One Step. It’s time to refocus on the flagship and discontinue the 2 manufacturers and childrenswear. It’s essential to observe that the junior phase accounts for 82% of IKKS’s losses.

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FNW: Does this imply that you simply assume the grownup a part of IKKS, the core on which you are refocusing, might be worthwhile pretty shortly?

SC: You’re proper. As early as the primary yr—2026, which shall be a transitional yr—we now have a worthwhile enterprise mannequin, with reinvestment again into the corporate.

FNW: Alongside the buyout, you introduced a 16 million euro funding bundle. What are your funding priorities?

SC: We’ve budgeted virtually 17 million euros to get the provision chain engine up and operating once more. It’s an actual machine. We’re going to spend money on boosting the brand’s desirability, and in IT infrastructure that’s from one other period, which we’ll improve within the first quarter. In my expertise, I’ve all the time been fast to rework firms.

FNW: What will you carry over out of your expertise at Levi’s and Dockers? What do you assume is important to the profitable evolution of a model?

SC: We’re going to make clear the brand’s identification and values. We’ll improve the client expertise, notably by participating extra meaningfully with our group and relying rather less on promotions alone. To do that, we’ll spend money on infrastructure and in our go-to-market. We’ll spend money on manufacturing capabilities so we might be extra versatile and maintain stock that matches market wants. We need to be much less dependent on promotional durations.

FNW: Is the concept additionally to cut back the share of income coming from markdowns?

SC: You have to be clear about costs. You cannot set a value after which run everlasting promotions afterwards. So we’re going to carry extra readability for customers to the pricing construction, particularly firstly of the season. By the best way, the design group has carried out an awesome job, which is why we’re maintaining them on. Now we’re going to make this provide extra seen, with a pricing construction that has to be logical. Encouragingly, the outcomes for this reworked grownup provide are constructive.