Showroomprivé Announces Strategic Divestment of The Bradery Stake to Founders
French online retailer Showroomprivé has signed a letter of intent to sell its 52.75% majority stake in The Bradery back to the company's co-founders and executives. The transaction, valued at approximately 23 million euros, represents a strategic move for Showroomprivé as it navigates market challenges while acknowledging the significant growth The Bradery has achieved under its ownership. This divestment comes amid broader financial restructuring efforts following Showroomprivé's reported net loss of nearly 40 million euros for 2024.
In a significant strategic move within the European e-commerce landscape, Showroomprivé has announced its intention to divest its controlling stake in The Bradery, marking a pivotal moment for both companies. The French online retailer confirmed on Wednesday that it has signed a letter of intent to sell its 52.75% majority stake back to The Bradery's co-founders and executives, Timothée Linyer and Edouard Caraco.
Transaction Details and Valuation
The proposed transaction values The Bradery at approximately 43.6 million euros, with the stake sale amounting to around 23 million euros. This valuation reflects the substantial growth and value creation that has occurred since Showroomprivé's initial investment in the company. According to the official announcement, the sale includes an initial payment of 17 million euros at closing, with the remaining balance structured through installment payments and potential earn-out arrangements tied to The Bradery's future performance.
Historical Context and Growth Trajectory
Showroomprivé initially acquired a 51% stake in The Bradery in May 2022 for 10.2 million euros, establishing a strategic partnership that has yielded impressive results. Under Showroomprivé's ownership, The Bradery experienced remarkable growth, with revenue surging from 21.7 million euros in 2021 to 62.9 million euros in 2024. This period also saw the company achieve a return to profitability, demonstrating the successful execution of its business strategy and market positioning.
Strategic Implications and Market Context
This divestment comes at a crucial time for Showroomprivé, which reported a net loss of nearly 40 million euros for 2024, partially attributed to what the company described as a "remeasurement of The Bradery acquisition debt." The strategic decision to sell its stake aligns with Showroomprivé's broader efforts to streamline operations and strengthen its financial position amid challenging market conditions. The company recently reported a 16.5% year-on-year decline in revenue for the first quarter of 2025, citing "persistent market sluggishness" as a contributing factor.
Future Outlook and Completion Timeline
The transaction is expected to be finalized before the end of the year, pending standard regulatory approvals and closing conditions. This timeline allows for a smooth transition of ownership back to The Bradery's original leadership while providing Showroomprivé with additional capital to support its core business operations. The earn-out structure included in the agreement ensures ongoing alignment between both parties, with potential additional payments contingent upon The Bradery's continued performance under its founders' leadership.
This strategic divestment represents a significant chapter in both companies' histories, highlighting the evolution of partnership models in the competitive e-commerce sector. While Showroomprivé focuses on stabilizing its core business, The Bradery returns to its entrepreneurial roots with strengthened financial performance and market position, setting the stage for the next phase of growth under its original leadership team.
