LOOKIN’ TO SCORE
La Vie en Rose, saved from bankruptcy by CEO, opens in Toronto Eaton Centre’s renovated wing
As new La Vie en Rose opens in Eaton Centre, CEO who spared lingerie retailer from bankruptcy hopes lightning strikes twice with Bikini Village buyout,
In the middle of an interview at his newest store at Toronto Eaton Centre, La Vie en Rose chief executive officer François Roberge leaps from his seat and plucks a red-and-black baby-doll top from a rack. He gives it a little shake. “This is strong in Canada, Morocco and Dubai. (Shake, shake, shake.) They don’t like this in Saudi — they’re used to having everything long. So we developed a long version.”
Swish. Back to the rack goes the baby-doll top, priced at $39.99.
Being flexible — being nimble — helped Roberge turn the bankrupt La Vie en Rose into an international retailer, with178 stores across Canada and 95 stores in 17 countries including Panama, Azerbaijan, Saudi Arabia, Iraq and Morocco.
There are plans to open15 more international stores in the next 12 months.
Now Roberge wants to do the same for Bikini Village, the 52-store swimwear retailer he and his partners purchased for $4 million after it filed for bankruptcy protection in February.
“When I bought La Vie en Rose 20 years ago, people said I was crazy. Ten years after, they said I was lucky. Now, today, people are starting to say I’m smart,” said Roberge, 52, of Montreal. “We have a very aggressive plan for the division to be sure that in a year it is going to start to be profitable.”
Bikini Village lost $6 million on $35 million in sales in its most recent year, he said, adding that he was the only retailer to bid for the chain. The others were from liquidators.
What both La Vie en Rose and Bikini Village have in common, said Roberge, is great names and great retail locations.
Roberge bought La Vie en Rose in 1995, when it had 23 stores losing $600,000 a year.
He moved company headquarters to Montreal from Toronto, closed two stores, and improved store productivity by working with sales staff. He made a profit the first year.
Although competition has increased since he purchased the brand, Roberge believes there are markets U.S. retailers won’t touch.
“We want to be a destination for women in Canada . . . there’s a lot of small towns, like Sudbury, for example — Victoria’s Secret will never go to Sudbury.”
Roberge began his retail career driving a truck for his uncle Paul Delage Roberge, who founded the apparel retailer San Francisco in 1978.
He spent 20 years honing his retail skills at San Francisco, including managing the bathing suit division. He met his wife while working there — she managed one of the stores.
San Francisco filed for creditor protection in 2003, following a period of overexpansion and an attempt to go upscale under the banner Les Ailes de la Mode.
“He lost everything,” Roberge said of his uncle. “Every day think about that. It keeps me grounded.”
Roberge intends to launch a transactional website for the brands this year that will also serve U.S. customers.
Once the Bikini Village brand is stabilized, Roberge plans to expand it westward in Canada and internationally.
Bikini Village will sell private label and other brands for $80 to $250.
Bathing suits at La Vie en Rose will sell for $50 to $80, so as not to cannibalize sales, Roberge said.
Looking around the retail landscape, at chains that have shuttered or filed for bankruptcy, Roberge believes the indus- try is in a period of transition that is nearing an end.
“There’s one or two (more) and I think after that, it is going to be finished. I hope so. Because we are not going to have any more industry if it’s going to continue. We lost a lot of players in Canada,” Roberge said.
“We saw a big cleanup. It’s sad but it’s part of the game. Retail is exciting, but at the same time, it’s a tough business. If you make mistakes, you pay.”