Reuters has reported that the GLAS group of bondholders has taken a 28 percent stake in SMCP, the umbrella company of Sandro, Maje, and Claudie Pierot. It is likely they will sell the stake, which will result in SMCP having a new owner.
SMCP’s ownership has come up as a point of contention ever since its majority stakeholder Shandong Ruyi defaulted on some bonds. GLAS is also looking to change the board at SMCP.
Shandong Ruyi has been crippled by a large amount of debt, and the bond default could result in them having to completely shutter some brands, like Gieves & Hawkes. The company once hoped to become a luxury conglomerate on par with LVMH or Kering, but their insurmountable amount of debt has dashed those dreams.
Despite being majority owned by a less than stellar performing company, SMCP has been doing very well for itself. Sales are up 54.6 percent on an organic basic.