VeePee co-founder and ex-Levi's head acquire IKKS Group with new turnaround plan
The acquisition of the IKKS Group, a French premium ready-to-wear specialist known for its eponymous brand alongside I.Code and One Step, has concluded following a competitive bidding process. The company entered receivership in early autumn, attracting around a dozen bidders, including the owners of prominent fashion brands like The Kooples, Morgan, Pimkie, and Caroll. However, the eventual victors were Michaël Benabou, co-founder of VeePee and head of Financière Saint James, and Santiago Cucci, an industry veteran and former head of Levi's and Dockers.
In the final stretch of the bidding process, the duo strengthened their offer. Cucci, who had previously served as chairman of the HoldIKKS holding company, leveraged his familiarity with the brand. Their successful bid, which won formal approval from the Paris Court for Economic Activities and the backing of the group's works council, safeguards 546 jobs and includes 119 directly operated stores. The consortium committed to investing €700,000 to acquire the brand’s assets and inventories, along with another €700,000 to contribute to the social plan for departing employees.
Following the court's official decision, Santiago Cucci expressed delight at taking over the iconic brand, noting its deep emotional connection with French consumers. He highlighted that many French people, having grown up with the brand or experienced it through their children, share a positive affinity for IKKS. This emotional capital was evident in the response from partners; of the 118 affiliates contacted, 116 agreed to continue their collaboration with the new ownership. Cucci emphasized that the brand's high regard within its entire ecosystem—from consumers to suppliers and affiliates—forms a crucial foundation for its future turnaround.
The new leadership's roadmap involves a significant strategic refocusing of the IKKS Group. The plan includes discontinuing the I.Code and One Step brands to concentrate resources on the flagship adult business. The junior business, despite being part of the brand's roots, will also be put on hold. This difficult decision was driven by financial realities: the junior segment currently accounts for 82% of IKKS’s losses, and the market for childrenswear in France is heavily dominated by second-hand platforms. Cucci believes refocusing on the core adult segment, where former junior consumers have now become adults with existing positive brand associations, offers the strongest path forward.
Cucci stated that the adult business model, when properly managed, could achieve profitability quickly. He predicts that the streamlined operation will be profitable as early as 2026, which will be the first transitional year under the new ownership. Alongside the buyout, the consortium announced a substantial investment plan of nearly €17 million. These funds are prioritized for revitalizing the supply chain and upgrading the brand's outdated IT infrastructure, which Cucci described as being "from another era." The goal is to rapidly transform the company's operational capabilities.
Drawing on his experience at Levi's and Dockers, Cucci's strategy for IKKS involves clarifying the brand's identity and values. The focus will shift from heavy reliance on promotions to enhancing the overall customer experience through more meaningful engagement with the brand community. The new leadership intends to implement a logical pricing structure and reduce dependence on markdowns. By investing in production capabilities, the brand aims to increase flexibility, better match inventory to market needs, and reduce reliance on promotional periods, ultimately bringing clarity and consistency to consumers regarding pricing at the start of each season.
