Sometimes all it takes is one stone to fell a giant. It was a series of nasty pebbles in the shoe that finally felled Cameleon, the Goliath of off-price designer clothes. Faced with unbridled competition, the brand, despite always being at the forefront, had to give up and declare bankruptcy in November 2020.
But David was watching. This is how the former purchasing director, Pascale Switten, accompanied by two rebellious entrepreneurs named Alexis Malherbe and Thibaut Dehem, took up the challenge of raising the fallen colossus, stone by stone.
Rengo & hub.brussels: 4-star support
For this original takeover, the trio were able to enjoy complete, custom-made support. They received an account manager within hub.brussels who coordinated their support, from assistance with the recovery after the bankruptcy to the relaunch and the redefinition of the activities.
On the financial side, hub.brussels:
- organised a financial update every two months with Rengo representatives
- advised Rengo to operate in start-up mode to limit its debt
- encouraged the company to review its inventory to limit costs
- presented to Rengo the different public aid it could receive. (investment aid, consultancy aid, etc.)
Rengo also received a “crisis” loan of €400,000 from finance&invest.brussels as part of its delegated mission set up in the context of the Covid-19 crisis.
On the commercial side, hub.brussels:
- supported Rengo throughout the process of redesigning its commercial offer, both in the outlet and on Rengo Street
- organised mystery shopping to give Rengo more precise customer feedback and thus determine the areas for improvement. This is why Rengo decided to hold commercial excellence training for its staff, which took place at the end of 2021.
- conducted a first audit of Rengo’s presence on various digital media, including social networks
On the administrative side, hub.brussels:
- supported Rengo in its urban and environmental permit procedures for the establishment of its new HoReCa space. The application to renew the environmental permit, which will soon expire, was also challenged by hub.brussels.
On the circular side, hub.brussels:
- provided, via its brussels cluster, support for the development of new activities in the field of upcycling and the search for new potential partners.
Rengo was also able to receive the support of external experts, hired by hub.brussels, for more specific matters, such as legal support for the bankruptcy and social aspects, support with the governance and democratisation of the company and support to move towards more sustainable activity.
Pascale Switten
CEO-partner of Rengohub.brussels is an essential partner, which has assisted Rengo since its start, up until now. They have shared their expertise with us in several areas. I'm not from Brussels, but I'm even more impressed by the support you can get from an organization like hub.brussels. We can always turn to them and that's very reassuring for a new company. Thank you very much!
Rengo, Star of a new business model
Thanks to this fierce determination, the takeover of Cameleon became a reality in December 2020. Around fifty ex-employees were able to become shareholders of the very young SRL, thanks to an innovative solution found by JobYourself, in which the cooperative signed an agreement with each candidate (self-)buyer, allowing them to still receive unemployment benefits while those who wanted to became employees but especially shareholders of Rengo. This solution allowed the company to recapitalise and finance the continuation of its activities.
Like the Cameleon it replaces, Rengo, which means “rebirth”, has been able to reinvent itself, while keeping the rebellious and innovative spirit that accompanied its birth the first time. The metamorphosis included a new restaurant (Hanoi Station), a bar, a space dedicated to local products (Rengo Street) and , as of June 2, the opening of “re-love”, a sales outlet entirely dedicated to second-hand clothing.
After the phoenix, a unicorn? While the start-up is successful, the lure of profit is not its shareholders’ goal. Because Rengo is first and foremost a human investment. And that is priceless.
