From Fame to Financial Ruin: The Collapse of Comptoir des Cotonniers and Princesse Tam Tam

Is this yet another episode in the series of fashion store bankruptcies? On Friday, June 20th, Comptoir des Cotonniers and Princesse Tam Tam filed for judicial reorganization, according to information from the Fashion Network confirmed by a source close to the case to AFP on Monday, June 23rd. This marks another blow to the mid to high-end ready-to-wear sector. However, in the early 2000s, both brands were thriving and in excellent financial health.

Founded in Paris in 1985 by sisters Loumia and Shama Hiridjee, Princesse Tam Tam quickly became a success, surpassing €30 million in revenue by 2000. Driven by its success, the brand acquired the lingerie licenses for Kookaï and Daniel Hechter three years later. By 2005, it had become the second largest chain in the sector behind the Etam group. Comptoir des Cotonniers, on the other hand, was established in 1995 by the Nelson group, based near Toulouse. The scenario was the same: the brand saw increasing success.

The two stories converge and become inseparable in 2005, when both brands are acquired by the Japanese group Fast Retailing, the parent company of Uniqlo, which opened its first store in France two years later. This is followed by ten years of growth. In 2017, Comptoir des Cotonniers enjoyed a turnover of approximately €148 million. Princesse Tam Tam, for its part, reached €75 million in 2018, an increase of 3.5%.

That’s when the troubles begin. 2018 marks the start of a downward spiral for both brands. That year, Comptoir des Cotonniers’ turnover fell by 12.5%. The lingerie brand experienced the same fate the following year: a 13.4% decrease. Behind these poor results are the weak growth in consumption and a rapidly changing ready-to-wear market. The two brands failed to appeal to the new generation of thirty-somethings, while the previous generation was their core market. As a result, Comptoir des Cotonniers went from 200 stores in France – and 400 worldwide – in 2015, to 95 in 2019.

The advent of the global Covid-19 pandemic, and the closure of all businesses for several months, worsened the situation, as did the high inflation that began in 2021. In 2021, Comptoir des Cotonniers launched a new plan to close 74 points of sale, and 30 were closed in 2023, with 101 jobs cut from 272, leaving 40 stores in France. Meanwhile, Princesse Tam Tam has undergone four restructurings since 2018. The most recent, in 2023, resulted in the closure of 27 of 69 stores, and the elimination of 84 positions from 235 permanent contracts. At the time, Fast Retailing France highlighted the need to « adapt to changes in the clothing market ».

The latest blow came with the entry of ultra fast-fashion into the market, through Chinese brands Temu and Shein, as well as the American giant Amazon, which accounts for 7% of the French market, a share that is rapidly increasing. This year, clothing sales in France grew by 3%, mainly driven by these new players – who represent 30% of the market – and by the second-hand sector, with the Lithuanian platform Vinted leading the way.

What will the future hold for the two brands? Contacted by the economic media Capital, the Fast Retailing France group indicated that it is seeking to « preserve jobs as much as possible and to restructure the activity of the companies allowing them to find a viable and sustainable economic trajectory within the framework of a recovery plan ». A reduction in the number of stores is being considered, but with larger stores in which both brands would be present. Whatever the case, the desire to save the ship seems to be present. The former CEO of Comptoirs des Cotonniers (2003-2007), Frédéric Biousse, indicated in Le Figaro that he is « available to Tadashi Yanai (the CEO of the group, editor’s note) or other investors, funds or fashion professionals who would be ready to take over Comptoir des Cotonniers and Princesse Tam Tam ».

However, it is uncertain whether this will be enough, in a sector generally struggling. In recent years, many brands, such as Camaïeu, Kookaï, Gap France, and Naf Naf, have faced the same fate.