Calida, a prominent Swiss manufacturer of underwear and swimwear, is caught in a legal battle following the sale of its garden furniture division, Lafuma Mobilier, to the French company Peugeot Frères. The lawsuit has raised significant challenges for Calida, as the Peugeot family is demanding a staggering 39 million euros in damages—representing nearly 70 percent of the purported sale price of Lafuma Mobilier.
The sale itself was completed in July 2024, marking a strategic shift for Calida as it sought to concentrate on its core business operations. Lafuma Mobilier, known for its outdoor furniture, had been under Calida’s ownership since 2014 and generates more than half of its revenues from international markets, distributed in over 40 countries, making it a significant player in its sector. Following the divestiture, Calida reported a net profit of 15 million francs for the 2024 financial year after suffering a loss of 66 million francs in the previous year.
Now, with the lawsuit stemming from the share purchase agreement, Calida has stated that it finds the claims to be entirely unfounded. In a media release, the company asserted that the allegations regarding the basis, justification, and amount of the demands are 'baseless.'
According to Calida, the lawsuit is reportedly linked to share buybacks of 43.6 million francs that took place after the sale, largely financed by proceeds from the Lafuma transaction. Analysts have suggested that this indicates a contentious element of the sale, potentially complicating Calida's financial positioning. The firm has firmly rejected these claims, reinforcing that it will not be submitting to what it describes as unfounded demands.
Investor confidence has taken a hit since the announcement of the lawsuit, especially following a previous disappointment when Calida replaced its customary pyjama dividend with a discount voucher. Furthermore, Calida's shares have slid approximately 30 percent since the end of the share buybacks in September 2024. On March 25, 2025, shares were trading at around 19.20 francs, showing a modest increase of 0.31 percent that day but a stark contrast to the overall decline noted in recent months.
Promises of additional profits from the Lafuma transaction complicate the situation further. Calida expects to see another million-franc profit in the current fiscal year due to a yet-uncertified land sale. This upcoming profit, while hopeful, adds pressure as the lawsuit looms over the company. The management hopes to navigate through public scrutiny and legal challenges while maintaining a focus on growth and corporate recovery.
Peugeot Frères Industrie, the legal claimant, is regulated by its CEO Nicolas Huet and seems to be taking a firm stance, filling litigation with demands that have yet to clarify fully the rationale behind the 39 million euro figure. Such disparities between claimed damages and available public sale information have raised eyebrows in the financial sector.
Calida’s rejection of the accusations brings an unexpected twist to the tale of the sale of Lafuma Mobilier, a deal initially expected to boost the company’s financial standing. The lack of clarity surrounding the demand for a significant portion of the sale price has led to speculation regarding potential oversights or miscommunications during the acquisition process.
As the company prepares for potential court proceedings, many investors are watching closely for further developments. Calida's plans to provide more information in due course may help clarify its stance and bolster its position, yet the uncertainty surrounding these claims continues to overshadow the firm.
The response from analysts, as well as from the market, has been cautiously optimistic but reflects a lingering uneasiness. Observers note that any indications of further legal trouble could weigh heavily against Calida as it seeks to regain lost ground and improve its stock performance.
The saga of Calida, Lafuma Mobilier, and Peugeot Frères underscored a modern-day cautionary tale about corporate acquisitions, the significance of clear terms, and the potential pitfalls that come with complex business dealings. As it stands, both parties seem determined to defend their positions, setting the stage for a legal confrontation that could have implications for the future of Calida.
As the trial unfolds, the financial health of Calida will be under scrutiny, with stakeholders keenly awaiting how this lawsuit will impact the company’s ongoing strategy and market presence.
