French fashion group IKKS, owner of the IKKS, One Step and I.code brands, is planning to downsize, owing to a market situation characterised by “unprecedented disruption.” On February 5, the group presented to employee representatives a recovery plan envisaging the suppression of up to 202 jobs in France, where the group has 1,328 employees.
The IKKS group, which was bought in 2019 by its creditors, US investment funds Avenue Capital, Carval Investors and Marathon Asset Management, is also planning to close 77 retail outlets (between stores and concessions) of the 604 it is currently operating in France.
The restructuring plan has been called ‘PhoenIKKS’ by the group, which has been spearheaded since 2020 by Ludovic Manzon. In a press release, the group stated that it has been adversely impacted by the pandemic, the invasion of Ukraine (where it used to have some factories) and rising inflation.
“Faced with this complex economic situation, the IKKS group has decided to react vigorously, developing resilience strategies to ensure its long-term survival. The PhoenIKKS plan is designed to strategically refocus the brand on its most profitable ready-to-wear activities, and to adjust its geographical footprint,” said IKKS.
For the time being, the group has not stated whether it will close any of its subsidiaries outside France, and whether some of its brands or product categories might be discontinued.