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The encyclopedia · Strategy & Leadership · Strategic decision · 1993–2007

French jewelry brand expanded into everything — and collapsed under its own weight

Biche de Bere expanded from jewelry into five unrelated categories. By 2007 it was in liquidation with €7–10M in liabilities and 180 jobs lost.

Biche de Bere · 2007-11

What happened

Biche de Bere was founded in 1993 by Nelly Biche, a designer trained at the École Supérieure de Design Industriel in Paris and the Pratt Institute in New York. The brand sold costume jewelry through its own boutiques and grew rapidly — opening stores in Paris, Nantes, Nice, and then New York and Los Angeles. By 1996 it had built a factory in Châteaubriant, investing 6.8 million francs and employing 40 people.

The company hit its first cash-flow crisis in 1998 and entered judicial reorganization. It survived, but founder Nelly Biche responded by diversifying — launching a ready-to-wear line in 1999, then accessories, then children's wear, then household linen, then wedding dresses. By 2006 the company had 300 employees, 34 stores in France and 46 abroad, and revenue of €8 million. But it was doing too many things and none of them well.

In April 2007, Biche de Bere entered judicial reorganization for the second time. The court found the company had no realistic recovery plan. On 31 October 2007 it was dissolved, and in November 2007 it was placed in immediate judicial liquidation with liabilities of €7–10 million. All 180 remaining employees lost their jobs. Founder Nelly Biche attempted a comeback in 2021 with new boutiques, but those also failed in 2023.

Why it happened

  • The 1998 crisis should have been a warning to focus. Instead, the founder expanded into five unrelated categories — none of which had the margins of the original jewelry line.
  • The company was chronically undercapitalized. Cash-flow problems appeared in year five and never went away. Diversification spread resources too thin without fixing the underlying weakness.
  • Management practices were widely criticized: repeated late salary payments, high staff turnover, and multiple lost employment tribunal cases. The company was not just overextended — it was poorly run.
What it cost€7–10M liabilities; 180 jobs; 81 stores closedcostly

The lesson

When a small company hits a cash-flow crisis, the answer is not to launch five new product lines. Diversification spreads thin resources thinner. Fix the core before expanding into everything.

Sources

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