Cortina, a large Belgian footwear trading company with good sourcing and logistic capabilities, is moving further into the branded shoe business with the acquisition of a 50 percent stake in Patrick Holding, in cash and through a capital increase. Jørgen Nielsen, a Danish investor who is also involved in other businesses, retains the other half of the equity in this company, set up in 1999 after he took over the rights to the brand in certain markets.
Patrick Holding now holds the rights to the brand for Europe, the Middle East and Africa, with the exception of the UK and Saudi Arabia. JJB Sports holds the rights to the brand in the UK. The brand generates annual sales of about €10 million in the territory covered by Patrick Holding, but the potential is clearly higher.
Patrick has a long history in football, where its boots were worn by the likes of Michel Platini, Jean-Pierre Papin, Kevin Keegan and Michael Laudrup, but it has had many vicissitudes in the past few years, taking on a different positioning in different countries. The intention now is to focus on the mass market and on the shoe shops in Europe, where Cortina is strong, following a strategy already pursued for Patrick in Scandinavia. Exclusive deals may be struck with certain sporting goods retailers that may want to use the brand as a low entry price alternative to other B brands. Cortina’s well-oiled FLA system of pre-financing and customs clearance, which has been adopted by many foreign footwear brands doing business in Europe, will improve the whole supply chain.
To help improve the product and develop a marketing strategy for Patrick, the new owners have signed a consultancy agreement with two French executives, Alphonse Clement and Thierry Scheydecker, who worked previously for Le Coq Sportif. Last year they set up a distribution and licensing company, CS Dif’fusion, that is managing the European footwear business of Royal Elastics, Bollé and Roland Garros. They will work together with Flemming Delfs, who remains in charge of Patrick Scandinavia. Charles Beneteau, the French-based son of Patrick’s late founder, continues to be involved in the operation. Clement knows Patrick well because he worked for the brand in the past (more in Shoe Intelligence).
