No child's play at Petit Bateau

A STORM has blown up at Petit Bateau, the Breton maker of fancy clothes for babies and children, over plans to produce some of its gear in Tunisia.

Vincent Huguenin, the managing director who has steered the company on a course of successful growth and international expansion, has abruptly departed, to be replaced by Stephane Bianchi, chief executive of its parent company, cosmetics group Yves Rocher.

Huguenin has declined to discuss his departure, while Yves Rocher insists it stems from 'major differences of opinion over the implementation of the strategy of outsourcing from Tunisia'.

The outsourcing plan represents a radical departure for Petit Bateau. Founded by Troyes hatmaker Pierre Vatton and his wife Noemie in 1893, it has grown to employ more than 1,100 workers in its home town.

Last year, it made net profits of e17.1m (£10.5m), up 44%, on sales of e209m. Under Huguenin, a business that made its name with innovative children's knickers and baby vests has extended its range to cater for all ages from newborn to 18 years, with designs and stripey patterns drawing heavily on its Breton cultural heritage.

Meanwhile, the group has built an international network of 93 wholly owned stores in half a dozen countries, including flagship outlets in Tokyo, Berlin, Barcelona and London's King's Road. Aided by Yves Rocher, it has even branched out into children's cosmetics. But relations with Yves Rocher, another Breton business that began with a hatmaker, have been intermittently tempestuous since 1988, when Yves Rocher acquired 97% of Petit Bateau only to discover its finances were less sound than expected.

Rival textile firms are clearly hoping Yves Rocher, which has grown into a giant retailer of 'natural' cosmetics, may be tempted to sell its interest, although a disposal would be complicated by Petit Bateau's quote on the second market of Euronext in Paris.

But with sales of e1.82bn in 2000, five factories and 12,900 employees, Yves Rocher founder Yves and his son Jacques have a full-time task developing their core family business.