French chain Orchestra-Prémaman, which specialises in clothing for baby and children, will be protected against creditors over the next six months - a period that can be extended to eighteen months if needed.
"This procedure is not a form of liquidation", manager Pierre Mestre was keen to emphasise to the French magazine, Midi Libre. "All debts are suspended. It will allow us to begin to build a sustainable recovery." The retailer is working on a rescue plan, while in the meantime the operation will continue normally, he said. At the request of the management, shares in Orchestra-Prémaman share have been suspended since Monday.
According to Mestre, the group's difficulties are partly due to the blockades by the 'yellow vest' movement (the 'gilets jaunes'), which have already cost the company nearly 30 million euros since November 2018. Pierre and Chantal Mestre's company had a very difficult financial year 2018-2019, which saw net losses increase sharply to 88.2 million euros. In 2018, Orchestra-Prémaman was granted debt rescheduling but the retailer also faced operational problems due to the sudden downgrading of their credit insurance rating.