Ikks invests following acquisition, reopens stores and rehires employees

Retail

France, Paris, February 6, 2024, an IKKS store. Credits: MAGALI COHEN Hans Lucas / Hans Lucas via AFP

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Paris - IKKS's new owner, Santiago Cucci, is projecting "double-digit growth" by 2027 for the once-struggling fashion company. The plan includes re-establishing a presence in Spain, taking over ten additional stores, rehiring previously redundant employees, and an investment of 17 million euros.

"We have changed everything," said Santiago Cucci, the current president of the holding company HoldIKKS. He acquired the brand in December with Michaël Benabou, co-founder of the e-commerce site Veepee, and presented his strategic direction to the press on Wednesday.

IKKS, founded in 1987, is a premium ready-to-wear brand for womenswear, menswear and kidswear, with a rock-inspired DNA.

The brand was placed into administration in October. At the time, the group cited several reasons: "the global health crisis caused by Covid-19, the consequences of the war in Ukraine where the group had a strong presence, and persistent inflation."

The acquisition saved 546 jobs in France, approximately half of the workforce.

"It was a disaster," said the Basque executive Santiago Cucci, a former executive at Quiksilver and Tommy Hilfiger. He has "overhauled" the entire production chain; logistics; IT; and warehouse and store management.

Today, IKKS produces one-third of its products in Asia, one-third in Europe and one-third in the Maghreb, and has over 250 stores, Cucci specified.

Its new owners have invested 17 million euros and "repaid the debt," he added.

They have also taken over "more than ten additional stores" beyond those acquired in December and have rehired around thirty employees who were made redundant. "We have also recovered the Spanish subsidiary," which includes nine stores and 17 corners.

International expansion is one of the brand's key growth drivers, the executive believes. "Today, 97 percent of our turnover is generated in France. We are dependent on a single country and its macroeconomics, which is something I am not used to," admitted Cucci, who has led large international companies. "Tomorrow, we will be in several countries," he said, without revealing which ones.

The CEO believes consumers are very "attached" to the brand and wants to attract 30 to 35-year-olds who grew up with it. He projects a turnover of over 120 million euros in 2026, "double-digit growth" in 2027 and a return to profitability.

This article was translated to English using an AI tool.

IKKS

Santiago Cucci