- Angela Gonzalez-Rodriguez |
New York- Orchestra-Prémaman, one of the biggest players in the childrenswear market in France has launched a reorganisation plan. The French group has been placed in the safeguard procedure since last September due to financial difficulties.
In order to overcome the mounting debt – the company has recorded 164 million euros in cumulative operating losses since 2015 - Orchestra-Prémaman has announced that it will refocus on its five main markets (France, Belgium, Switzerland, Morocco and Greve.)
In 2018, the group’s profit deteriorated sharply, dropping to 89.6 million euros. To combat the rapidly worsening finances, the brand plans to close stores in deficit or very unprofitable, which means the closure of 44 stores in France, as well as the closure by liquidation of 81 stores abroad.
The company explained that in France, the logistics organisation will now be in a single warehouse located in Arras, in the North, while the Saint-Aunès and Saint-Jean-de-Védas sites, near Montpellier, will be closed.
Internationally, the apparel chain will be closing 81 stores (73 in Germany, Spain, Luxembourg and Belgium.) Priority is given to "large formats (megastores), digital and new multi-channel services", according to the company.
Meanwhile, Orchestra-Prémaman will go through a deep logistics restructuring: the Saint-Aunès and Saint-Jean-de-Védas warehouses in Hérault will close, affecting 115 positions. The logistics activity will be grouped together in the new Arras warehouse, which will result in the creation of 130 jobs in Hauts-de-France. The company as advanced they will offer the latter as ‘reclassification positions’.