Orchestra-Prémaman settles with creditors

Orchestra-Prémaman settles with creditors

French baby and children store chain Orchestra-Prémaman has found an agreement with its most important creditors to delay the refunding of debts by two years.


Disappointing results

A 2.6 % decrease in turnover during the last quarter of its fiscal year led Orchestra-Prémaman to a 611.6 million euro annual turnover (only a 0.5 % gain). In its home market there was a 1.7 % increase, but internationally (the group is active in some forty countries) turnover took a 1.4 % dip. While children's accessories continue to bring in more money (the branch is already worth 20 % of the group's turnover), the turnover from fashion took another dive. On the bright side: the number of customers in the loyalty programme went up by 2.5 % to 1.8 million: these card holders bring in 90 % of the company's turnover. 


These disappointing results spelled trouble for the French company: in order to avoid insolvency, it needed its major creditors (mainly the CM-CIC bank) to greenlight a debt restructuring. CM-CIC has now agreed to extend the current credits (209.2 million euro) by two years to July 2020, while by the end of next year there should be a capital increase of at least 28.5 million euro. CM-CIC receives 16.3 % of Orchestra-Prémaman's shares, decreasing the share held by founder Pierre Mestre and his investment fund Yeled Invest from 68 % to 51 %.


"This debt restructuring is crucial for Orchestra", general manager Thomas Hamelle says: "Against a background of a quickly evolving textile market and distribution sector as a whole, we will be able to invest in digital and logistical tools, as well as in the transformation and expansion of our stores and in our franchise partners."