PARIS — French online retailer L'Exception has been acquired by Hong Kong asset management firm AA Investments, joining a fast-growing group that also includes e-tailer French fashion and home decor e-tailer Smallable and sneaker resale site Wethenew.
Founder Régis Pennel revealed the deal in a LinkedIn post on Tuesday, adding that he was resigning with immediate effect. Cécile Roederer, founder and chief executive officer of Smallable, will take over leadership of the company, he added.
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“I am convinced that L'Exception is now in very good hands to continue its development,” said Pennel, who was unavailable to provide additional details.
It's capping rocky year for multi-brand e-commerce platforms. Founded in 2011, L'Exception was hit hard by the coronavirus pandemic, closing its physical storage in the Forum des Halles shopping center in 2021 and moving to sustainable fashion accelerator La Caserne next year.
Despite the backing of French entrepreneur Jacques Veyrat's industrial holding group Impala, L'Exception struggled with slowing demand, high costs and rising DTC sales.
Specializing in French and European brands with a sustainable bent, the concept store – which launched a direct-to-consumer store private label men's line in 2018 — has recently transformed into a market with a view to finding a buyer.
AA Investments, managed by the Goshayeshi family behind the Iranian beauty retail Sapphire chain, swept up a raft of distressed assets in recent months, although it has yet to outline the strategy behind the acquisitions.
It has also applied for the Y/Project brand from Paris, which was placed in receivership in September. A commercial court in Paris is expected to rule on the matter in early January.
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