SAINTE-JULIE, Que. – Groupe Bikini Village (TSXV: GBV) has put a figure on the sale of substantially all of its assets to Boutique La Vie en Rose Inc.
The insolvent Quebec-based swimwear retailer said it received gross proceeds of approximately $3,790,000 from privately held La Vie en Rose, best known for its lingerie but also for other womenswear and accessories, including beachwear.
La Vie en Rose CEO Francois Roberge disclosed last week that he had paid under $4 million for Bikini Village, a company that he previously tried to buy three times over the past 12 years.
Roberge said he planned to keep 48 of Bikini Village’s stores in Quebec, Ontario, New Brunswick and Nova Scotia, but would close four outlet locations in Quebec.
About 300 jobs will be preserved, but half of the 50 head office jobs will be lost as it merges the headquarters of the two companies.
After stabilizing the business, the new owners plan to work on adjusting the merchandising at the retailer in time for the fall cruise season.
The changes are designed to restore annual sales to about $50 million from $34 million at present.
It will then focus on a Canadian expansion, especially in Western Canada, increasing the number of stores to about 70 to 75 over the next year to 18 months before expanding the brand internationally in about two years.
Montreal-based La Vie en Rose has almost 180 boutiques countrywide divided into three store concepts: La Vie en Rose, La Vie en Rose Aqua,and La Vie en Rose Outlet. La Vie en Rose has also opened more than 90 boutiques outside Canada, in 17 countries.