In recent months, the new shareholders have analyzed the company’s product portfolio with the aim of distinguishing it from the competition.
At the end of this exercise, the organization decided to reduce its product range and focus on the “promising” niche of sportswear and accessories.
In 2020, Louis Garneau, then CEO of the company that bears his name, took refuge from creditors. Private equity firm Corporation Financière Champlain became a minority shareholder to help restart the company.
The restructuring worked well and the company had two very good years after that. But if sports participation remains strong and consumer demand remains strong, the company faces many challenges. Among other things, the market is facing excess inventory due to fluctuations in the supply chain since the pandemic.
“The sportswear market offers a great perspective, at a time when playing sports has never caused so much enthusiasm. In order to stand out, we will focus on our strengths. Today we are witnessing the renewal of the company and we look to the future with optimism and confidence”, said the company’s CEO Jean-Marc Jahoo in a press release.
Louis Garneau founded a company specializing in bicycles in 1983. He is now a minority shareholder. It also sold the main office building located in Saint-Augustin-de-Desmaures a few weeks ago. The company remains the tenant of the space.
Louis Garneau Sports brings together three brands: Louis Garneau, Sugoi and Sombrio. The various collections are designed in Quebec, but production takes place abroad.
More details to come…