Le Coq Sportif is closing its Portland-based North American subsidiary just months after re-launching the French sportswear brand in the United States. The company re-entered the U.S. market in February with a line of apparel and footwear targeting resorts, boutiques, tennis clubs and private athletic clubs. The European-tinged lines were aimed at higher-income consumers ages 25 to 40 years of age.
The decision affects seven employees based in Portland, OR.
Speaking to Sports Executive Weekly, Tim McCool, chief executive of Le Coq Sportif North America, said the re-launch had been successful in the U.S., but management in Europe decided to focus on maximizing stronger-than-expected growth in Europe. Swiss investment fund Airesis — controlled by former Adidas chief executive Robert Louis-Dreyfus — bought a controlling stake in Le Coq in 2006, including North American distribution rights, and has been successfully repositioning the brand in Europe.
McCool said Le Coq Sportif may come back to the U.S. once the economy stabilizes. “Overall, the U.S. economy is certainly unstable but that's not the big factor,” said McCool. “The primary factor is theyve got the tiger by the tail in Europe and it's a small company. It's not a billion dollar company, so every dollar needs to be spent wisely.”
McCool also noted Le Coq Sportif will be in a much better position to re-enter the U.S. if it's able to regain its formerly strong position overseas. “Nike is a U.S. brand, so its real important that it's strong in the U.S. In Le Coq Sportif, you have a European brand and you have an opportunity to become much stronger in France and Southern Europe. If it's stronger there, it will be much easier to re-enter the U.S.”
As for McCool, a former adidas and Nike executive, he has no plans to join Le Coq overseas.
“I'll see what's in the marketplace,” said McCool. “It's going to just be a European brand at this point and I'm an American. So I have no plans to go anywhere else.”
