David Morgan, the 48-year-old chief executive of Quiksilver, was appointed last Friday as chief executive of the Rossignol Group, replacing Jean-François Gautier. A former financial executive of L’Oréal who worked there at the same time as Bernard Mariette, current president of Quiksilver, he joined him at the American company two years ago.
Quiksilver’s decision to explore the possible sale of all its remaining interests in the sports equipment sector through JP Morgan, which is still in progress, had led Gautier to step back from Rossignol's day-to-day management, pending the final outcome of this review.
Gautier had made a firm offer to Quiksilver to lead a leveraged management buying of the Rossignol’s Dynastar and Lange brands and of all the ski boot operations of the group. Gautier’s management buyout program contemplated the establishment of two manufacturing joint ventures. Dalbello is said to have been part of this scheme as a possible subcontractor. Gautier had received the backing of financial institutions and of financial interests not connected with the sports trade.
However Quiksilver’s board felt that the Rossignol group would be worth more for a potential investor by preserving all its internal synergies in R&D, production, logistics and administration, similar to those being established between Atomic and Salomon.
Quiksilver’s management is certain to find a buyer for the Rossignol group, whose equipment sales fell by only 12 percent during the past calendar year. The Rossignol group's revenues for the 2007-08 selling season are down so far by only 18 percent from the same period a year ago, indicating some growth in market share. For the financial year ending next Oct. 31, Quiksilver is projecting total sales of $450 million for the Rossignol group, of which $60 are represented by clothing alone, up from $40 million in the previous year.
The new management of Rossignol will continue the repositioning, cost reduction and brand extension program already mapped out by Quiksilver. The business plan calls among other things for the development of apparel and hiking boots under the Dynastar brand and of motor-cross boots for Lange.
At Rossignol, Morgan will coordinate a team of experienced managers who will meet every ten days to make joint decisions for the short and long term. Bernard Liatti, who was in charge of Rossignol's ski division, will act as senor vice president of the Rossignol group, advising Morgan on all the important issues. François Goulet will remain in charge of North America with the title of vice president. Yves Barnoud, in charge of finance, and Stephane Weinhold, in charge of softgoods, will also be part of the new executive board as vice presidents.
The board will include four general managers - Jean Cavallo (production), Jean-Luc Gaydon (subsidiaries), Hubert Nominé (distributors) and Michel Vion (R&D and sports marketing) - and three directors - Olivier Ravassard (boots), Vincent Besson (controlling) and Jacques Larmet (human resources).
Quiksilver has already received many expressions of interest for Rossignol. As reported, it recently sold its golf equipment operations, represented by Cleveland Golf and its sub-brand Fidra, to the Japanese group that owns the Srixon brand. The Fidra brand has been subsequently sold to another Japanese firm, Goodtimes International, which has changed its name to Fidra.
