Debt-laden Vivarte sells Spanish shoes brand Merkal to OpCapita

Private-equity backed French clothing retailer Vivarte, which is aiming to restructure some 1.3 billion euros ($1.5 billion) of debt, said it had sold Spanish shoes brand Merkal to private investment firm OpCapita.

The transaction forms part of Vivarte’s ongoing disposal programme, and follows similar sales earlier this year of its Kookai and Pataugas brands.

Vivarte has been owned since 2014 by a group led by investment funds Alcentra, Babson, Oaktree and GLG Partners.

Vivarte’s profits and sales have fallen amid competition from larger clothing retail chains such as H&M, Kiabi and Primark, leading to the company’s decision to restructure its business in order to improve its financial fortunes.