VeldhovenGroup acquires Olsen

Womenswear business VeldhovenGroup has acquired German fashion brand Olsen out of insolvency, and will take control of the business from December 1. VeldhovenGroup, the parent company of brands including Stills, Sandwich, Nono and

Turnover, views the womenswear brand as a “natural fit” with its core strengths and portfolio of brands and announced that it was part of its strategy to focus on the “women’s mid-market segment”.

Olsen filed for insolvency in August after a potential investor dropped out at the eleventh hour; however the group has said that acquisition would secure its long-term future and that it would support the brand’s plans to develop.

VeldhovenGroup chief executive Martijn Veldhoven said: “With its strong heritage, Olsen is a great addition to the VeldhovenGroup. The brand is a perfect fit with our strategy of focusing on the women’s mid-market segment.

“Olsen enhances our positioning and increases our overall brand presence, enabling us to reach many more female consumers. Despite the difficulties the company went through recently, Olsen has a strong organization and brand value to build from.”

VeldhovenGroup takes control of Olsen

Olsen’s CEO Urs-Stefan Kinting added: “In VeldhovenGroup we have found an investor who will support us in our plans to further develop the Olsen brand.

“Furthermore, Olsen’s international subsidiaries, particularly our retail stores in Canada and Poland, will remain an important component of Olsen’s footprint.”

In a statement from the group it confirmed that it would maintain Olsen’s independent status and that the womenswear management would report to the group’s CEO Martijn Veldhoven. It also added that the group would assume responsibility for Olsen’s foreign subsidiaries.

Olsen’s financial problems were blamed on the weak economy. The fashion label’s turnover has declined in recent years from 100 million euros in 2010 to 89 million euros in 2012, and according to German fashion magazine Textilwirtschaft operating income in 2011 amounted to -6.6 million euros. It’s the German brand’s strong sales abroad that has made this deal possible, as 65 percent of its sales are abroad with Canada, Poland and Russia being strong markets for the brand.