Showroomprivé Offloads Majority Stake in The Bradery Back to Founders to Streamline Operations

Showroomprivé lightens its portfolio. The French ecommerce company has announced its intention to sell its 51% majority stake in The Bradery platform to its founders, Timothée Linyer and Edouard Caraco, for €43.6 million.

The French company took control of the company, founded in 2006 and specialized in fashion, in May 2022. At the time, it paid €10.2 million for what was its competitor. Now, Showroomprivé justifies the increase in the value of The Bradery by the increase in its revenues. The platform has gone from generating €21.7 million to €62.9 million in three years, from 2021 to 2024, according to a statement on Thursday.

Showroomprivé takes this decision after making a loss in its last fiscal year, 2024. The platform posted a loss of €39.7 million, compared to the positive, albeit slight, result it had obtained in the previous fiscal year. Although its gross operating profit (ebitda) remained positive at €2.3 million, it represented a 90.4% drop compared to 2023.

Showroomprivé paid €10.2 million for its competitor’s platform, which has gone from a turnover of €21.7 million to €62.9 million 

The goal is to materialize the transaction before the end of the year, depending on regulatory approvals. Showroomprivé will receive a first payment of €17 million and, in addition, will earn revenue as The Bradery meets its performance targets.

Showroomprivé CEO David Dayan said thatthis sale will allow them to “monetize the investment” and strengthen their financial structure, “at a time when optimizing cash flow is essential.“ He added that the company seeks to “optimize its resources” and “prioritize partnerships with high-performing and specialized companies, as opposed to direct investments”. For their part, the co-founders of The Bradery acknowledged that without Showroomprivé they would not have been able to “grow so quickly”.

In March, Showroomprivé justified its latest annual financial results with the reduced dynamism of the fashion category and, precisely, the acquisition of The Bradery. In its last fiscal year, The Bradery brand grew by 41%, while the international market increased its revenues by 10%.

For the coming year, Showroomprivé intends to rebound with new marketing strategies, a permanent sales strategy and, above all, by simplifying its business.

Founded in 2006, Showroomprivé has a staff of around 1,100 people and began operating in Spain in 2010. It is currently led in the country by Alicia Formoso Lema, who has held the position of general manager in the territory since 2019. It offers a selection of more than 3,000 brands and is listed on the Euronext Paris market.