Orchestra-Prémaman has filed for receivership: the French children’s clothing chain is only one more step away from bankruptcy. The chain is looking for a new buyer, hoping they will bring a new future.
Payments halted
Orchestra-Prémaman has filed an application for legal redress with the French Commercial Court. This is another step in the insolvency proceedings that the baby store chain had initiated in September, when the retailer was granted protection from creditors. Now the chain appears unable to fulfil its payment duties, French law stipulates that companies can apply for restructuring within 45 days of cessation of payments. A receiver is then appointed and creditors are also given a representative.
The company now has to submit a recovery plan which, according to management, would consist mainly of seeking investors or buyers. In addition, management wants to pursue its plan to close a number of stores and reduce the number of employees. Negotiations with creditors are to be started as well.
Orchestra-Prémaman was already suffering before the coronavirus hit, but this crisis has only made the situation worse: After all, the company is active in countries where strict isolation measures are in place, such as France, Spain, Italy and Belgium. All shops are closed, only the online shop remains active. According to the latest published annual results, for the financial year from 1 March 2018 to 28 February 2019, the chain has already seen its sales fall by 6.8 % and recorded a net loss of no less than 88.2 million euros.
