Big plans for Jil Sander

Private equity group Change Capital Partners has acquired Jil Sander from Prada for an undisclosed amount. Now the new owners have set an whirlwind expansion plan into motion which includes the immediate opening of three boutiques in Japan , a replacement location in London and a boost of Jil Sander's US operation. Change Capital, which is based in London and is headed by former Marks & Spencer chairman and current Carrefour chairman Luc Vandevelde, told WWD that it will continue to acquire more brands as part of its future strategy.

Change Capital managing director Steven Petrow said in a telephone interview with WWD that the turnaround of the Sander brand - which Prada had restructured - was now "largely complete and now we're planning for growth. We think significant growth is possible for this brand and it will continue to compete against the biggest names in the fashion business." He estimated that Sander should break even in 2006 on expected revenues of €140 million, thanks to the Prada group's restructuring initiatives. He would not, however, comment on the price paid for the brand.

Petrow maintained that Change Capital would preserve Sander's positioning in the market as "super premium, very high-quality, conservative designs." He also said that the company was "gearing up for a three-to five-year investment horizon". Possibilities after that include an IPO, a trade sale or passing the company to another financial group. Petrow spoke of his confidence in creative designer Raf Simon's ability to create "a clear fashion vision for the company". He added that good press review and wholesale reaction to his debut men's and women's collections emphasized the group's belief in him.

Meanwhile, in a written statement, a spokesman for Sander said: "(Simons) feels very confident in the new owner, who will continue to support his work to give back to Jil Sander a strong creative position in the fashion world. He is looking forward to collaborate with the new owner of Jil Sander." Neither Petrow nor Vandevelde are expected to take an executive role in Jil Sander, where chief executive Gian Giacomo Ferraris and CFO Armin Mueller continue to wield the sceptres. "We are financial sponsors; we are active owners," said Petrow. "We'll take an active role as a sounding board." There are currently 16 directly operated Sander stores and approximately 50 franchised stores worldwide. The brand also has wholesale distribution in Asia , Europe and North America .