Struggling French fashion house Sonia Rykiel has been placed into receivership, or the French equivalent of Chapter 11 bankruptcy protection.
A commercial court granted the brand's request for protection until the end of June this year, while it looks for a new owner. The news follows that of Sonia Rykiel which filed for Chapter 7 bankruptcy in the United States in April, and shut down several of its stores, including those in New York and London.
First Heritage Brands, a Hong Kong investment group, which in 2012 bought a majority stake in Sonia Rykiel and acquired it outright in 2017, is looking for new investors to take control of the label, which has undergone a behind-the-scenes makeover since its 2014 relaunch. First Heritage Brands has contracted Rothschild to handle the transaction.