Chronext, a European watch e-tailer that had flirted with the idea of going public, announced this week that it has filed for voluntary administration.
Voluntary administration is akin to Chapter 11 bankruptcy reorganization in the United States.
“We see the current measure as a significant opportunity to reposition Chronext,” said Frederike Knop, managing director of parent company Chronext Service Germany GmbH, in a statement. “By initiating this procedure, we can make the necessary adjustments to secure the company’s future.… We are confident that this strategic decision lays the foundation for an even stronger and more customer-oriented Chronext brand.”
In its statement, Chronext—which sells both new and secondhand watches—pledged to protect watches sent to it on consignment.
“It is important to us that our customers know that we will continue to do everything we can to maintain their trust during this time,” said Knop. “We place the utmost importance on ensuring that customer property is handled separately under self-administration.”
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Chronext was founded by roommates Philipp Man and Ludwig Wurlitzer in their London apartment in February 2013. By 2020, its revenue hit 100 million euros.
The next year, the company announced plans to file for an IPO, with a valuation up to 702 million euros (approximately $773 million). In the run-up to the planned offering, it recruited a slew of big names. Norbert Platt, the former CEO of Richemont, became a company adviser. Onetime Tiffany & Co. chief brand officer Daniella Vitale and former Facebook chief marketing officer Gary Briggs both joined its board.
In late 2021, Chronext postponed the IPO due to “adverse market conditions.” In 2022, as the watch market cooled, it laid off nearly one-third of its staff. In April 2023, it said an unspecified Swiss investor group had purchased a majority stake in the company. Philippe Roten, the former head of watch brand Favre Leuba, was appointed CEO, replacing co-founder Man. Four months later, it announced two new investors: Helvetica Capital and watch expert Linus Fuchs.
Roten left Chronext in January of this year, according to his LinkedIn profile. In July, Knop, the chief operating officer and managing director of the company’s German division, became its third CEO in two years.
Knop told WatchPro that behind-the-scenes maneuvering ultimately hurt the company.
“Due to many changes at management and investor level, some groundbreaking projects were not pursued in the long term,” she said. “No matter how good the company’s basic idea is, you simply won’t get anywhere if you constantly change your strategy…. We must and may now abandon long-winded daydreaming and act purely realistically.”
Top: A Chronext boutique in Munich, Germany (photo courtesy of Chronext)
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