PARIS — French online retailer L’Exception has been acquired by Hong Kong-based asset management firm AA Investments, joining a rapidly growing group that also includes French fashion and home decor e-tailer Smallable and sneaker resale site Wethenew.
Founder Régis Pennel revealed the deal in a LinkedIn post Tuesday, adding that he was stepping down with immediate effect. Cécile Roederer, founder and chief executive officer of Smallable, will take over the leadership of the company, he added.
“I am convinced that L’Exception is now in very good hands to continue its development,” stated Pennel, who was not available to provide additional details.
It caps a rocky year for multibrand e-commerce platforms. Founded in 2011, L’Exception was hit hard by the coronavirus pandemic, closing its physical store in the Forum des Halles shopping center in 2021 and moving to sustainable fashion accelerator La Caserne the next year.
Despite backing from French entrepreneur Jacques Veyrat’s industrial holding group Impala, L’Exception struggled with a slowdown in demand, high costs and the rise of DTC sales.
Specializing in French and European brands with a sustainable bent, the concept store — which launched a direct-to-consumer private label men’s line in 2018 — had recently transformed into a marketplace with a view to finding a buyer.
AA Investments, controlled by the Goshayeshi family behind Iranian beauty retail chain Safir, has swept up a raft of distressed assets in recent months, though it has yet to outline the strategy behind the acquisitions.
It has also made a bid for Paris-based brand Y/Project, which was placed into receivership in September. A Paris commercial court is due to rule on the matter in early January.
