The parent company of two famous children’s ready-to-wear brands has been placed in receivership. Without a solution, these brands could be forced to close their stores!
The crisis in the clothing world continues to impact ready-to-wear brands. In recent years, we have seen a significant drop in sales in France and Europe, leading to major financial difficulties for brands. Some are forced to close their stores and reduce their staff… Others have even had to request a backup plan, be placed in receivership and file for bankruptcy.
Conclusion: several brands could be doomed to disappear. Among them, according to Le Figaro, two historic ready-to-wear brands for children, very famous among parents, could be out of business for me. These are Du Pareil Au Meme (DPAM) and Sergent Major.
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Placement in judicial recovery
Their parent company, Générale pour l’Enfant (GPE), was placed in receivership on March 14. As decided by the Bobigny commercial court (Seine-Saint-Denis), the company, which declared itself in cessation of payments on March 6, benefits from an observation period of 6 months, i.e. until until September 16, 2024.
In June 2023, GPE management announced the placement in receivership of DPAM as well as placement in safeguard procedure of Sergeant Major. A few months later, last December, the Sergent Major brand was also finally placed in receivership, according to the commercial court.
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Closing 50 to 100 stores?
At the time, the group also revealed to AFP that it had been widely “impacted” by “social crises, the Covid-19 pandemic, the energy crisis and inflation”, but also by “the explosion of costs” electricity, rents and raw materials, according to a GPE press release. During the period of health crisis, the company noted a drop of 100 million euros in its turnover “due to store closures during the pandemic”.
Faced with these announcements, the company had planned a restructuring and development plan for its digital strategy. In particular, it had set itself the objective of achieving 25% of its sales online “by 2027”, with an investment of 5 million euros. This plan also provided for “a closure or sale of around fifty Sergent Major stores and around a hundred at Du Pareil Au Meilleur”.
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