LORENZO

LORENZO
Andrelux Industries
Founded : 1980
Activities : Leather and imitations of leather, and goods made of these materials and not included in other classes; animal skins, hides; trunks and travelling bags; umbrellas, parasols and walking sticks; whips, harness and saddlery.
Parent Company : Orcofi Holdings
Stockists : International
Origin : 12 Rue de l’Argonne 75019 Paris, France
www.Andrelux.com
www.Orcofi.com

Between 1989 and 1991, Orcofi established an impressive portfolio in the luxury sector. They acquired leather conglomerate Andrelux Industries (Bohata et Cie, Lorenzo, Soco, Upla, Le Tanneur), French trunk maker Moynat, a heritage company founded in 1849., the luxury grocer Hédiard, Cristalleries Daum, Philippe Model (the French fashion shoe and accessories designer), the young signature ready-to-wear Ines de la Fressange and Paris’ oldest couture house, Lanvin.

In 1991, the accounts of the parent Orcofi posted a record $600 million net profit and operating profit amounting to $187 million. Assets including the flagship, Lanvin, destined to become once straightened “a new Chanel,” was valued at 5 billion francs.

Then fortune shifted when Andrelux, the largest holdings of Orcofi, saw its sales fall by 7% in 1992 to under $600 million explained in part by the judgment of the subcontract for LVMH Moët Hennessy-Louis Vuitton in the second half. Also deficient, both SMEs that provide the major luxury brands, Gordon-Choisy (rare leathers) and Collaert (belts), were undergoing restructuring.

The situation of CFC Daum, whose sales fell 13% to under $200 million, was considered “very serious”. Lanvin, the estimated loss for 1992 stood at $180 million ($166 million in 1991) and the 1993 budget still provides for a deficit of $150 million.

Orcofi and L’Oreal, which each held 50% stakes, heavily invested in the two year renovation of Parisian shops costing $185 million, and the disposal of 70% of the capital distribution companies in Japan, Hong Kong and Singapore ($208 million). Balance was expected for 1994, for Lanvin and for the rest of the group. In an attempt to protect partners and shareholders, Orcofi sold subsidiaries.

From Orcofi, 50% of the House of Lanvin was acquired by L’Oréal in 1994, 66% in 1995 and 100% in 1996. Gordon-Choisy, one of the world’s most prominent tanneries specialized in exotic leathers, was initially sold to LVMH and then to Hermes International. Luxury holding company Luvanis SA, based in Luxembourg, bought the rights to Moynat in 2009. In a twist of irony, Groupe Arnault, LVMH’s CEO Bernard Arnault’s holding company bought Moynat in 2010 with plans to relaunch operations by 2011.

Qatar Luxury Group announced the acquisition of a controlling share of the French leather goods company Le Tanneur & Cie in 2011. Le Tanneur, founded in 1898, and Soco, had been listed on Euronext since 2000, the same year it signed a licensing agreement with Michael Kors and Celine. Cristalleries Daum is now part of Financiere Saint-Germain, parent company of Lalique and Haviland Porcelain Works. Grand Metropolitan has quietly worked behind the scenes to reassemble the heritage brands and reinvent the legacy that formed Orcofi Holdings.

Today LORENZO, is being reignited with a return to its roots hand bags, back bags; school bags; satchels for school boys; traveling bags, satchels, card holders, document cases; briefcase type portfolios and purses not of precious materials; drawstring pouches, trunks for traveling, small cases for documents, tool bags sold empty, traveling dressing cases, umbrellas, and saddlery.

Orcofi Holdings now relies on Italian leather brand Nunziato, acquired as part of Heilig-Meyers, as it’s main source for exotic leathers such as alligators, crocodiles, ostriches, shark and stingray.

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