Fung buys French high-fashion house, Sonia Rykiel

Sonia Rykiel, one of the last family-owned French luxury brands founded by one of the world’s 10 most elegant women, has severed its continental roots and is moving its ownership to Hong Kong.

Nathalie Rykiel, daughter of founder Sonia Rykiel, has shocked world fashion by turning over ownership of her mother’s company to Hong Kong investment firm, Fung Brands.

Fung, whose major investors are Hong Kong billionaires Victor and William Fung, is acquiring 80% of Sonia Rykiel. The Rykiels will retain 20% ownership.

The Fung family is behind Li & Fung, Ltd, a global trading group that supplies high-volume consumer goods. Garments comprise some two-thirds of the Li & Fung business.

The trading house is the parent firm of luxury menswear maker and distribution group Trinity, which has owned Italian menswear brand Cerruti since 2010. Fung Brands also owns shoemaker Robert Clergerie and Belgian fine leather goods maker Delvaux, which it bought in 2011.

"That one of the last family-owned French luxury brands lets Hong Kong investors come into its capital amuses me a lot," said Nathalie Rykiel.

"And I prefer to be the flagship brand of a company like Fung Brands than just one of many brands within a large group."

"I took the brand as far as I could alone. But the family needed the financial, strategic and human resources to make this brand what it was destined to become, which is a global brand."

She said Fung Brands would give it the means to expand in Asia and North America, open more shops and have a bigger advertising budget.

Nathalie Rykiel, who will be vice chairman in the new set up from President and Artistic Director, will give up the day-to-day management of Sonia Rykiel. This job will be taken over by Fung Brands Chief Executive Jean-Marc Loubier, a fashion veteran who once ran luxury brands Celine, Louis Vuitton and Escada.