Michel Klein Wins Major Investment Support

Mode et Finance, the French holding company in which Bernard Arnault is a key player, has acquired a one third stake in the fashion house of Michel Klein.

Joining Mode & Finance, Richard Simonin, one of France’s savviest luxury executives, has personally taken a 7.7% stake in Klein’s business.

Terms of the acquisition were not revealed, however the investment is designed to allow Klein to significantly develop his business and create a proper ad campaign.

Mode et Finance, whose investors include Devaux, Clarins and LV Capital, an investment vehicle of LVMH boss Arnault, has previously taken stakes in Martin Margiela, Anne Valerie Hash and Veronique Leroy.

“I am delighted by this vote of confidence in my fashion and in our house. Vive la mode, vive la vie!” Klein told FWD.

Following the investment, Mode et Finance own a 33% stake, while the remaining 59.3% is held by the founding partners, the designer and Eric Fournier, company president.

“I took a stake, because I believe Michel and Eric make a great team. Michel Klein has a very strong hand-writing, he’s found his style,” stressed Simonin, CEO of Etam, the giant French lingerie and sportswear label, which boasts a remarkable 3,500 sales points, 1,000 of which are shops, while the remaining 2,500 retail spaces are shop-in-shops in China, averaging 45 to 50 square-meters. Etam’s most recent annual sales were 960 million Euros, or $1.270 billion.

“Eric and Michel deserve this. They have the potential for real growth,” Simonin added.

Mode et Finance was founded in 1998 under the impetus of Didier Grumbach, the then recently elected president of the Chambre Syndicale, French fashion’s governing body.

“We believe in Michel and his team. A key component of our strategy is to leave control in the hands of the designer. We don’t manage companies; we assist them with capital at critical moments. As the Klein business is properly managed and can really accelerate with the proper financial support it seems a logical investment,” explained Grumbach.

He noted that after supporting the growing pains of Margiela, Mode et Finance sold its stake profitably when Diesel’s Renzo Russo became the shareholder of reference in that Belgium designer’s business.

Klein presented his first collection in 1976, though he was already known as a precious talent, designing prints for Yves Saint Laurent at the age of 17. As a designer he’s had his ups and downs, but this century has won a loyal following among major department stores such as Bergdorf Goodman and Saks for his stylish interpretation of French chic.

Traditionally, Mode et Finance invests in fledging designers, but made an exception for Klein, because, as Simonin put it: “he’s enjoying a strong second wind.

Klein presents his fall 2007 collection on Friday in the Carrousel du Louvre.

		* Lanvin Partnering with H&M * Coach Opens Ambitiously in Paris