Delpozo on the hunt for an investor
Perfumes y Diseño is putting Delpozo up for sale. The Spanish prêt-à-couture firm, controlled by the Trolez family group since 2011, is looking for an investor to sell either a majority or minority stake in the business. The move coincides with the arrival of its new creative director, German designer Lutz Huelle, who was appointed to succeed Josep Font in November last year.
Delpozo is changing gear. The Madrid-headquartered luxury firm, relaunched by Perfumes y Diseño eight years ago, is seeking new investors. The group's president Pedro Trólez has begun the search for the right partner in a move that could see the label change hands if there is investor interest in a majority stake. In an interview with American media company WWD, president Pedro Trólez said he wants to find a “very active” partner, who has a strong fashion background and wants to be involved in the brand’s development. His group is a fragrance specialist, he added, not a fashion expert. FashionNetwork.com asked the brand for confirmation but Delpozo declined to provide further comment.
The group, specialised in the creation and distribution of luxury fragrances, has held Delpozo’s perfume license since 1992 but it wasn’t until 2011 that it became its full owner. Perfumes y Diseño then embarked on an ambitious relaunch plan that involved an investment of €5.5 million over three years between 2013 and 2016, as well as a rebrand from ‘Jesús del Pozo’ to ‘Delpozo’. A year later, designer Josep Font was hired as creative director and he reimagined the brand’s aesthetic codes by introducing whimsical and structural silhouettes. His designs became a hit with fashion fans, earning the brand a cult status and paving the way for it to show at New York Fashion Week and London Fashion Week.
But in September last year Font announced his departure from the brand, leaving the house before he was able to complete his project of launching a signature perfume. The step seemed logical, given its parent owner’s expertise and background. Now led by new creative director Lutz Huelle, the brand is set to shift towards a new direction with more affordable price points, a diversified business and new eyewear and fragrance categories. Lutz Huelle's first ready-to-wear collection will be unveiled at London Fashion Week in September.
Last year, the Spanish label also entrusted the distribution of its accessories to Italy’s Massimo Bonini and announced that the Riccardo Grassi showroom would take over its wholesale business. This was part of a progressive new strategy that saw the company move some of its production to Italy. In January, Delpozo was forced to use a legal procedure to process the redundancy of about twenty employees in Spain.
This year, the brand is targeting revenues of €10 million. According to the company’s latest available accounts published with the Spanish Companies House, sales increased to €6.4 million in 2015. Currently, the brand’s expansion strategy is leading its growth in the Middle East and South Korea, where it has recently signed agreements with the Chalhoub group and KLH International, respectively. Delpozo has a presence in 34 markets through 80 stores, including three flagship boutiques in Madrid, London and Dubai.
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