(Update) French children’s fashion group IdKids, owner of Okaïdi, has filed for protection from creditors at the commercial court in Lille. At present, there are no consequences for the Belgian branch.
Debt burden
IdKids, which operates in nearly 70 countries with 1,200 stores and nearly 6,000 employees, generating a turnover of €800 million, is burdened by heavy debt and faces strong competition from cheap fast fashion brands and second-hand fashion.
On Tuesday, the company applied for a moratorium on payments for its French activities at the commercial court in Lille. The hearing will take place next Tuesday, February 3. According to the group, the franchise stores and foreign subsidiaries will not be affected, but in Belgium, a special works council meeting will be held, L’Echo reports. The company has 335 stores in France and around 30 in Belgium.
Update: During the extraordinary works council meeting on Tuesday afternoon, the management confirmed that there are currently no consequences for the Belgian branch, according to the Belga press agency. Wages have been paid and the shops remain open. However, the socialist trade union points out that the company will have to reorganise itself because its stocks are located in France.
