Maison de Bonneterie

Maison de Bonneterie is a group of five upmarket stores across the Netherlands, selling high-branded mens’ and ladies’ fashion and accessories.  In a strategic initiative to reduce risk and financial exposure, the business had decided to convert the two main stores, in Amsterdam and Den Haag, to concession outlets and to close a further, loss-making store, in Heemstede. 

The stores stocked high end fashion brands such as Canali, Dolce & Gabbana, Karl Lagerfeld, Armani, Max Mara, Ralph Lauren and Hugo Boss.  As the Amsterdam and Den Haag stores were being converted to house concessions of similar brands, it was especially critical that, in clearing the stores of owned merchandise, there was no damage to the client’s brand equity.  This was accomplished by using a “Refurbishment Sale” theme and using sensitive marketing, including radio and press.

In addition to clearing the three project stores of their entire stockholding, including a significant amount of aged and obsolete merchandise, the client also requested that Gordon Brothers clear as much additional old stock from the rest of the business as possible.  So successful was this that Gordon Brothers cleared all problem stock from the entire business.
Working with the local teams, Gordon Brothers placed a consultant full-time in each of the three stores, ensuring that excellent client relationships were maintained throughout the project.  These relationships were further enhanced by including additional events within the discount programme, specifically for staff, their families and friends.

As stock in the refurbishment stores was sold through, and space created, areas were taken back by the client, allowing concession shop-fits to be built, rendering a smooth transition from one type of business to another for the customer and no loss of trade whatsoever from a closure period for the client.

The deal was structured on a success-fee basis, with a sliding scale coming into force once a minimum sales hurdle had been exceeded.  The deal was overwhelmingly successful, with a recovery value for the client considerably in excess of the highest scheduled level.

Willem H. Koster, Managing Director, Maison de Bonneterie, said, “Once we agreed the strategy for the future Maison proposition, we had decided to trade the stores out ourselves.  Gordon Brothers were then recommended to us - and as soon as we commenced discussions with them, it was obvious they could help us deliver a far better result, given their extensive retail experience and track record. A combination of Gordon Brothers’ expertise in maximising cash from retail merchandise and our deep knowledge of our own business meant that one plus one really did equal three!  The Gordon Brothers’ team were absolutely superb.  Their whole trading strategy and commercial acumen was simply outstanding and the way they integrated with - and truly inspired - the Maison teams was fantastic.  The final sales and profit result for the project came in significantly over budget – a huge success story!  I would have no hesitation in recommending Gordon Brothers to other people.”