Chanel has raised 700 million euros in a private placement in the United States. This large-scale financial operation is designed to reinforce the solidity and independence of the House, while providing it with the necessary means to face the growing challenges in a luxury sector in the midst of a normalization phase.
At the end of July, financial analyst firm Bloomberg revealed that Chanel had raised funds worth 700 million euros through private equity on the US market. Investment bank Goldman Sachs Group Inc. and Société Général SA are among the main investors in the bond, which has a maturity of between 10 and 12 years.
The London-based fashion house is the latest major European firm to use this form of private placement, following in the footsteps of Italian chocolate maker Ferrero and French spirits producer Rémy Cointreau.
There is every reason to believe that Chanel is seeking to anticipate the slowdown in its sales, a situation mentioned last May in its annual report.
Anticipated slowdown
Chanel’s raising of 700 million euros on the private debt market marks a key step in the company’s financial strategy. Unlike an equity fundraising, which could dilute the family control held by the Wertheimer brothers, this US private placement gives Chanel direct access to institutional investors, such as insurance companies. Companies using this system can thus bypass the risk associated with volatile public credit markets.
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Read also > Chanel appoints Fabrice Raoul as CEO of its French subsidiary
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