Luxury conglomerate Richemont announced that it has hired an advising firm to assist with the selling of its luxury leather bags by Lancel, according to a report by Bloomberg on Friday.
Nomura Holdings will help Richemont with the marketing and selling of luxury handbags by Lancel. Richemont gained control of the Paris-based Lancel, in 1997, buying it for $342 million.
The goal is to revitalize the under-performing business by eliminating its bad investments. It is rumored that Richemont may dissolve the division.
“The divestment of Lancel would be seen as a positive step as it would confirm that Richemont is willing to tackle their underperforming businesses,” Rene Weber, an analyst at Bank Vontobel, wrote in a note to investors. He estimates Lancel would be worth 200 million euros.