Kiko Milano expanded too fast — US Chapter 11, 64M€ loss, and a fire sale

Kiko Milano was founded in Milan in 1997 by Stefano Percassi, son of Italian entrepreneur Antonio Percassi. The brand sold affordable, colorful cosmetics directly to young consumers through company-owned stores. The formula was a hit in Italy, and by the early 2010s Kiko was expanding aggressively across Europe, Asia, the Middle East, and the United States. At its peak, the brand had stores in 30 countries.

The US expansion was particularly aggressive. Kiko opened stores in prime shopping mall locations across the country, betting that its European cachet and affordable price point would win American customers. But the strategy backfired. The US stores struggled to generate foot traffic, and the high cost of mall leases in America created a drag on the entire company. By 2015, Kiko's profitability was declining. EBITDA fell from 70M€ in 2014 to negative 30M€ by 2017, as the losses from international expansion overwhelmed the profitable Italian core business.

On January 12, 2018, Kiko Milano's US subsidiary filed for Chapter 11 bankruptcy, closing most of its American stores. The parent company was left with heavy bank debt and a net loss of 64.4M€ in 2018. In April 2018, Luxembourg-based fund Peninsula acquired a 30% stake to stabilize the company. New CEO Cristina Scocchia was brought in to restructure, shifting focus to e-commerce and franchising while retreating from unprofitable markets.

The company survived but at a cost. The Percassi family, which had owned Kiko outright, was forced to sell a majority stake (roughly 70%) to private equity firm L Catterton in April 2024, in a deal valued at over 1.5B€. Antonio Percassi retained a minority stake and the chairmanship. The case stands as a caution about the cost of international expansion when the home market alone cannot support the losses of a new frontier.