The Spanish company Percentil, a specialist in the acquisition and sale of second-hand clothing, has embarked on a quest to find a strategic ally that can ensure its continued presence in the sector. This development comes as the company initiated a creditor contest at the beginning of February. As the business landscape continues to evolve, Percentil is navigating the challenges of its current model, having been founded in 2012 by Lourdes Ferrer, Luis Ongil, and Daniel Bezares. Notably, in 2018, the Swiss group Texaid, which specializes in textile recycling, gained a controlling stake in Percentil.
A Business Model in Transformation
As of the latest available data, the company concluded 2023 with a debt of 529,869 euros and liabilities exceeding 4,000,000 euros. During the same period, Percentil’s revenue reached 2,580,000 euros, alongside losses of 269,489 euros. This financial snapshot underscores the company’s need for a strategic partner to navigate the complexities of its current business model. Lourdes Ferrer, the founder and CEO of Percentil, emphasized in an interview that the company is actively seeking an ideal partner who believes in changing the model and ensuring the project’s continuity. This innovative approach focuses on providing higher-quality products, prioritizing garments designed for greater durability, which could increase the profitability of the business model.
Collaborations and Strategic Alliances
Ferrer stressed, “It’s crucial that we don’t destroy over thirteen years of value that we’ve generated.” Currently, Percentil operates from a over 5,000 square meter warehouse in Getafe, Madrid, managing an inventory of nearly 160,000 clothing items and employing 36 staff members. The company is also involved in the collection and management of second-hand clothing for businesses such as C&A and Springfield, managing collections in approximately 70 establishments of the Tendam group and having carried out a pilot project with Scalpers the previous year. Additionally, Percentil has collaborated with the personalized shopping platform Lookiero, commercializing a portion of its surplus through Percentil.
Despite economic challenges, Percentil continues to maintain a customer base of 700,000, with 24,000 having made purchases over the last two-year period. The company’s managed marketplace model allows users to sell their clothing on the platform without dealing with logistics, as Percentil handles collection, management, and distribution, earning a percentage on each transaction. However, pressure on prices in the current market represents a significant challenge. According to Ferrer, the second-hand market has not yet been fully incorporated into the fashion industry, although it is a trend that “will eventually prevail.” Nevertheless, she warns that the resale market cannot continue to operate under fast fashion norms, with aggressive discounts promoted by large corporations like Shein.
In the quest for the perfect strategic ally, Percentil is forging ahead, emphasizing the importance of quality, durability, and sustainability in its business model. As the company navigates these uncharted waters, its dedication to innovation and customer satisfaction remains unwavering, setting the stage for a potential resurgence in the dynamic and ever-evolving second-hand clothing market.