The Orchestra-Prémaman group, specializing in ready-to-wear for children and childcare, headquartered in Saint-Aunès (Hérault), is moving towards receivership, according to a company press release, published Tuesday evening.
Under safeguard procedure since September, and as such under the control of judicial administrators, Orchestra-Prémaman plans to "request the short-term conversion of its safeguard procedure into a receivership procedure, in order to protect its activity", specifies this press release.
An ancient success story created in 1995
As of Monday evening, in an email to the employees, the boss of the company, Pierre Mestre, had mentioned this evolution towards a judicial recovery, after an extraordinary CSE, by specifying that the group was going to launch “very soon an appeal process d 'offers for the resumption of the activity and assets of Orchestra-Prémaman SA'. A new ESC will soon be held so that the employee representative bodies formulate their opinion on this project. Created in 1995, this former success story, today in great financial difficulty, employs 2,900 people worldwide.
"This procedural development in the situation of Orchestra is mainly linked to the financial consequences of the total closure of our global network for the past two weeks, due to (…) the Covid 19 virus and the confinement of populations", said Pierre Mestre.
A “lack of investment in e-commerce”
On February 17, a month before the start of confinement in France, Orchestra-Prémaman had announced the abolition of 600 positions, or 20% of its workforce, 125 store closings would be scheduled, on a fleet of 534 points of sale.
Questioned by AFP, a staff representative conceded that Pierre Mestre had "succeeded in a beautiful business", while pointing out errors: "When the company achieved 600 million euros in turnover, it targeted the billion, whereas it was rather necessary to consolidate positions, "he added, saying that" the reverse of the acquisition of the American Destination Maternity hurt. " The other strategic error, according to this staff representative, is "a lack of investment in e-commerce".
Over the first nine months (March to November 2019) of the current financial year, which ended at the end of March, the company's turnover amounted to 436.8 million euros, a slight increase ( + 0.7% compared to the same period in the previous year).
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