French fashion group IKKS, owner of the IKKS, One Step and I.code brands, is planning to downsize, owing to a market situation characterised by “unprecedented disruption.” On February 5, the group presented to employee representatives a recovery plan envisaging the suppression of up to 202 jobs in France, where the group has 1,328 employees.

The IKKS group, which was bought in 2019 by its creditors, US investment funds Avenue Capital, Carval Investors and Marathon Asset Management, is also planning to close 77 retail outlets (between stores and concessions) of the 604 it is currently operating in France.

The restructuring plan has been called ‘PhoenIKKS’ by the group, which has been spearheaded since 2020 by Ludovic Manzon. In a press release, the group stated that it has been adversely impacted by the pandemic, the invasion of Ukraine (where it used to have some factories) and rising inflation.

“Faced with this complex economic situation, the IKKS group has decided to react vigorously, developing resilience strategies to ensure its long-term survival. The PhoenIKKS plan is designed to strategically refocus the brand on its most profitable ready-to-wear activities, and to adjust its geographical footprint,” said IKKS.

For the time being, the group has not stated whether it will close any of its subsidiaries outside France, and whether some of its brands or product categories might be discontinued.

The IKKS brand’s collections for men, women and children are characterised by an urban contemporary, slightly mischievous style. France is the brand’s main market, followed by Spain and Belgium.

The group’s portfolio is completed by two much smaller sister brands: One Step is a womenswear retailer bought in 2015 from the Zannier group, while I.Code was created in-house in 2005 to target younger consumers.

The IKKS group was founded in 1987, and claims to operate 700 stores worldwide, with 1,700 employees in total. In fiscal 2019, before the pandemic, the group reported a revenue of €329 million, a peak that it hasn’t reached again since then. In 2020, Manzon and his staff deployed a plan that focused on product development, advertising and on attracting younger customers, aiming to make the group’s revenue and profitability grow again by 2025.

In 2022, deputy managing director Valerie Dassier and head of finance and technology Jean-Philippe Bou both left the group, to join French brand Aigle.

IKKS has tried to concentrate on developing strong products like sailor-stripe sweaters and new women’s handbags. However, like most ready-to-wear retailers, it has had to deal with the negative effects of the wars in Ukraine and the Middle East, and of rising inflation, which has greatly affected the spending power of its customers in middle-sized French towns.