Santiago Cucci's Strategic Takeover: Refocusing IKKS on Its Core Adult Business

In a significant move within the French fashion industry, the IKKS Group has found new leadership through a strategic acquisition. The winning bid came from a partnership between Santiago Cucci, a seasoned executive with deep experience leading premium brands like Levi's and Dockers, and Michaël Benabou, co-founder of the e-commerce giant VeePee. Their successful takeover, approved by the Paris Court for Economic Activities, marks a pivotal moment for the iconic French label, which had been placed in receivership. Cucci's immediate plan is a decisive refocus on the brand's core adult business, setting aside its historical roots in childrenswear to build a profitable future.

The acquisition process was highly competitive, attracting around a dozen bidders, including the owners of notable brands like The Kooples and Morgan. However, the duo of Benabou and Cucci strengthened their offer in the final stages. Their proposal, which preserves 546 jobs and maintains 119 directly operated stores, ultimately secured the backing of the group's works council and the court. For Cucci, who had already been serving as chairman of the HoldIKKS holding company, the victory was the culmination of a well-understood competition. He expressed delight at taking over a brand that holds significant emotional resonance for the French public, often associated with festive moments and family memories.

The Strategic Refocus: Prioritizing the Adult Segment

The cornerstone of Cucci's strategy is a sharp refocus on IKKS's adult business. This involves a difficult but necessary decision to put the junior business on hold and discontinue the group's other brands, I.Code and One Step. According to Cucci, this move is a direct response to market realities. In France, the leading player in the children's apparel market is now the second-hand segment, a trend IKKS must accept. Financially, this segment accounted for a staggering 82% of the group's losses, making its suspension critical for survival. The strategy banks on the existing affinity of a generation that grew up with IKKS junior wear now entering adulthood, providing a built-in customer base for the refocused brand.

Financial Framework and Investment Plan

The takeover is supported by a robust financial commitment. The acquisition itself involves a 700,000 euro investment to secure the brand's assets and inventory, with an equal amount allocated to contribute to the Social Plan (PSE) for departing employees. Looking forward, Cucci announced an investment package of nearly 17 million euros, primarily aimed at revitalizing the supply chain. This "machine," as he calls it, is a top priority. Additional investments are earmarked for upgrading outdated IT infrastructure in the first quarter and boosting the brand's overall desirability through enhanced marketing and customer experience initiatives.

Operational Roadmap and Brand Transformation

Cucci's immediate steps include meeting with employees in Saint-Macaire and assembling a new management team across key functions. He acknowledges the challenging conditions managed by the previous leadership and aims to build from there. Drawing from his experience at Levi's and Dockers, Cucci plans to clarify IKKS's brand identity and values. A key operational shift will be moving away from a heavy reliance on promotions. He intends to establish clearer, more logical pricing from the start of each season to reduce dependency on markdowns. Furthermore, he praised the existing design team, which will be retained, and plans to make their work more visible in the market. Encouragingly, Cucci projects that the refocused adult business will reach profitability as early as 2026, establishing a sustainable model for reinvestment and growth.