The Orchestra group, whose headquarters are in Saint-Aunès, near Montpellier, is subject to a safeguard procedure. - Jérôme Diesnis / Maxele Presse Agency

  • While the textile group has been in the safeguarding procedure since September 2019, two offers are presented this Wednesday before the Commercial Court of Montpellier for the Orchestra-Prémaman group.
  • The Saudi group Othaim Investment Company is ready to inject 30 million euros into it and is committed to keeping a significant part of the jobs.
  • Its CEO and founder Pierre Mestre will request placement in receivership. He plans to cut 600 positions.

Othaim Investment Company, a subsidiary of the Saudi family group Al-Othaim, must file a takeover offer from Orchestra-Prémaman, this Wednesday before the Commercial Court of Montpellier. The headquarters of the children's clothing and childcare articles group is based in Saint-Aunès, near the Hérault prefecture. Faced with financial difficulties, he was placed in the safeguard procedure in September 2019.

Two offers are in the running. That of the Saudi group envisages "the immediate safeguard of a significant part of employment, the maintenance of the headquarters and the logistics warehouse in Montpellier". The Saudi group mentions in the document filed with the Commercial Court an investment of more than 30 million euros.

Al-Othaim is a multinational company that employs 1,800 people

Al-Othaim, based in Ryad and founded in 1956, employs 1,800 people for a turnover of 2 billion euros. It operates nine shopping centers. It is also present in the fields of distribution (200 hypermarkets), retail trade (60 shops) and amusement parks (35 leisure centers).

The other offer was made by its CEO and founder Pierre Mestre. He is going to request placement in receivership. The severe slimming cure includes the closure of the Saint-Aunès logistics warehouse. Over 100 employees work there.

600 job cuts announced in the current CEO continuation plan

On February 17, Pierre Mestre announced the elimination of 600 positions, or 20% of its workforce. 125 store closings are scheduled in its continuation plan, in a fleet of 534 points of sale.

Over the past financial year, which ended at the end of March, the drop in Orchestra's turnover was 1.3% to 563.5 million euros.

Economy

Hérault: Children's clothing group Orchestra threatened by bankruptcy

Economy

Orchestra-Prémaman: Children's clothing giant to cut 159 jobs in France, 300 abroad

  • Languedoc-Roussillon
  • Legal redress
  • Montpellier
  • The Commercial Court
  • Clothes
  • Textile
  • Economy