Coperni seeks court protection amidst distributor dispute

French fashion house Coperni has secured a crucial court order, effectively placing it under judicial reorganization protection in Paris – a move mirroring Chapter 11 bankruptcy.

Financial strain and ownership battles intensify

The brand, known for its innovative approach and collaborations, is grappling with significant financial difficulties stemming from a protracted dispute with its majority shareholder and distributor, Tomorrow Ltd. This protection, secured on June 11th, aims to safeguard operations and allow for a potential restructuring.

Brand president and co-founder Arnaud Vaillant stated that the decision followed months of unpaid sums from Tomorrow, severely impacting Coperni’s finances and the livelihoods of its employees, despite ongoing international expansion efforts. The recent sale of Tomorrow to Progetto 11, an Italian e-commerce holding company, further complicated the situation.

Progetto 11’s involvement and founder attempts

Following the acquisition, Coperni’s founders, Vaillant and creative director Sébastien Meyer, have been actively pursuing a buyback of the label from Progetto 11. However, complex negotiations have stalled, leading to this court intervention. Progetto 11, which already owns The Level Group (home to brands like Palm Angels and Off-White), released a statement highlighting its commitment to the brand’s development, contingent on continued cooperation.

The court order specifically applies to Coperni SAS, distinct from Coperni UK Limited, which holds the licensing agreement with Tomorrow. This separation underscores the intricate legal landscape surrounding the brand’s ownership and distribution.

Operational safeguards and financial relief

Judicial reorganization doesn’t guarantee a company’s survival, but it provides a temporary reprieve from tax obligations and offers access to the French wage guarantee scheme, alleviating immediate financial pressures. Tomorrow's financial performance suffered dramatically, with turnover plummeting 34% to £8.4 million in fiscal 2024 and gross profit margins shrinking to 41% year-over-year, alongside mounting operating losses. The abrupt cancellation of the Fall/Winter 2026 Paris Fashion Week show served as a stark indicator of the brand’s troubles.

A difficult road ahead

Former Tomorrow CEO Stefano Martinetto stepped down following the sale. A former non-executive board member, Mimma Viglezio, suggests that Coperni needs a “new hit product,” referencing the brand’s iconic Swipe bag. While the outcome remains uncertain, the court order provides a crucial window for Vaillant and Meyer to regain control, navigating a complex web of negotiations and potentially reshaping the brand’s future.

Ultimately, the brand’s fate hinges on the successful completion of these negotiations, a process that will unfold under the watchful eye of a French court administrator.