Minelli Files for Protection Again After Rescue Attempt Fails

Minelli, the French footwear brand that underwent a rescue acquisition in early 2024 after being placed in receivership, has once again entered a protection procedure. This development was revealed by a court ruling obtained by the AFP agency on Thursday, indicating the brand initiated this new procedure in September.

Founded in 1973, Minelli specializes in footwear and leather goods, primarily targeting a female clientele. The brand first faced significant financial difficulties, leading to its placement in receivership by the Marseilles trade court in September 2023.

A lifeline was extended in early 2024 when Minelli was acquired by a consortium of three buyers: two private investors and the apparel brand Mes Demoiselles Paris. This new ownership group integrated Minelli into a newly formed entity named Maison Minelli.

However, Maison Minelli's path has proven challenging. On September 1, the Paris trade court placed the new entity under a protection procedure, appointing several receivers to oversee its operations. Unlike companies in receivership that have ceased paying creditors, a protection procedure is for businesses in severe financial distress that have not yet defaulted on their payments.

While the brand has not yet formally defaulted, its initial financial performance under the new structure shows significant hurdles. In its first fiscal year, which concluded in February 2025, Maison Minelli reported a net loss of €4.2 million on revenue of €22 million. Court documents indicate this revenue figure was €7 million "below the management's forecast," partly due to "a dozen of the stores that were bought turned out to be unprofitable."

The 2024 rescue operation had already entailed substantial job reductions. The original buyers' plan projected that only a little over 200 of the brand's 600 employees would retain their positions. The recent court ruling confirms Maison Minelli currently employs 171 individuals.

Management is now focused on a relaunch strategy, which, according to the court, involves "closing down unprofitable stores" and adopting "a new, more upmarket positioning" to revitalize the brand. Minelli's management has not yet responded to inquiries from AFP.

The protection procedure offers a potential path to recovery for companies facing severe financial difficulties. In the most optimistic scenario, it can lead to the successful deployment of a turnaround plan, a goal actively pursued by Minelli's management.

Maison Minelli will remain under court monitoring until March 1, 2026, when a definitive ruling on a potential recovery plan is expected to be issued. This situation reflects a broader trend in France, where numerous ready-to-wear and fashion accessories brands have entered receivership over the past 18 months, often struggling against intense competition from ultra low-price Asian e-tailers like Shein.