Orchestra faces safeguard procedure after losses quadruple
The French childrenswear company seeks judicial protection to restructure its business.
Orchestra-Prémaman faces insolvency. The French childrenswear retailer, one of the largest in Europe, has asked for safeguard procedure to restructure its business and avoid and eventual Chapter 11. The company closed its last fiscal year with net loss of 88.2 million euros.
The Court of Montpellier has granted this judicial protection to Orchestra-Prémaman for an initial period of six months, extendable up to 18 months. The group’'s largest shareholder, Yeled Invest, which owns 61.4% of the capital, has also requested the same safeguard process, according to local press.
The company gave the first alarm symptoms last June when it published its 2018-2019 fiscal year results, in which the loss of profitability of the company was announced. The company’s sales shirnked 6.8%, mainly due to the drop of the business in France, where its revenue fell 8.5%.
In this last fiscal year, Orchestra-Prémaman closed 18 stores. Despite the closures, the company increased its selling space by 1.9% based on flagship stores.
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