Tuesday, January 24, 2017

Vivarte farm 147 stores The Halle aux shoes and sells signs Andre and Naf Naf – The World

Faced with declining sales and asphyxiated by a colossal debt, the group announced that he was leaving Andre in the framework of a new restructuring.

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the direction of The group Vivarte has announced a new restructuring plan Monday, January 23, which will pass through two new plans to safeguard employment (PSE) for The Hall for shoes and Vivarte Services

The rumor had been circulating since the beginning of January, it has just been confirmed : the group of clothing and footwear Vivarte (La Halle, Carroll…) announced Tuesday, January 24 the sale of the shoe brand André (135 stores, 786 employees), have revealed the employee representatives at the conclusion of a central committee of extraordinary company (CEC).

The sign will be put on sale from Wednesday, January 25, and a buyer, whose identity has not been specified, has been found, according to the same sources cited by the AFP. Since Friday, the 20th of January already, the rumors were advancing the name of Christopher Descours to resume teaching. At the head of the EPI group, the owner of J. M. Weston and Bonpoint, which is none other than the grandson of Jean-Louis Descours, president of André from 1960 to 1996, however, has denied the charge.

The sale of André is not the only one announced. Against all odds, the group also puts on sale the fashion brand Naf Naf, which is added to those of Kookaï, Pataugas and Chevignon decided last year.

more bad news for this tough week for the 16 000 employees of Vivarte are confirmed. The action plan presented by the CEO, Patrick Puy, provides for the merger of the seats of The Hall to the clothes and The Halle aux chaussures, the reorganization of Vivarte Services (the support functions of the group), the rationalisation of points of sale, and search of buyers for other retailers…

Read also : Vivarte : the “table of hunting” the new boss worried about the employees

147 stores The Halle aux shoes closed

For The Halle footwear (680 shops employ 3 900 employees), the disposal in November 2016 132 stores has been increased. 147 stores are now concerned. Fault of buyer, the management would have announced their closure. In total 579 posts will be deleted, reveals the CFTC.

the announcement of The merger of the two Halls was expected, but The Halle aux clothing (480 shops and 4 100 employees) is still in shock :

” After the loss of 250 stores and 1 500 employees in 2015 and in 2016, we do not think that the new ads would relate to this sign “, continues Mr. Cheboub.

the merger of The two Halls may lead to the elimination of 79 positions at the headquarters and the conversion of 41 stores to the Halle aux shoes Halle aux clothing.

By Wednesday, the management should give information on the potential buyers of Kookaï, Chevignon and Pataugas, put on sale in 2016.

What will happen to the group Vivarte (16 000 employees and a turnover of 2.2 billion euro) at the end of the decisions communicated this week ? Shop unique emaciated, a group refocused around a brand Minelli, San Marina, Besson and Carroll. Not so simple…

The appointment of Sandrine Lilienfeld at the head of the brand Caroll queries as observers. The return in the group of the former president of Naf Naf, past chez Gérard Darel (placed into receivership in 2015), casts doubt on the intentions of the management with regard to the one of the only brands to have managed to rejuvenate its image and its offer in order to attract a new clientele of quadras.

in The news : Vivarte, a mode that does not pass

Debt to 1.3 billion euros

Even if inter wants to enjoy it to the end of the election period, the government’s position is clear. Yes, the group has touched 44 million euros from the State for 2014, including 14 million in 2016, the tax credit for competitiveness and employment, but Christophe Sirugue, secretary of State in charge of industry with the minister of the economy, has again reiterated its position to the national Assembly a fortnight ago.

It is not a question for Bercy to accompany companies whose sales of brands or stores are used solely to repay the creditors. All the more so when these former creditors become shareholders, as is the case for the group Vivarte.

Any attempt to renegotiate a new debt appears, for the time, extremely complicated management of the group.

In 2014, Oaktree, Alcentra, Babson, and GLG have agreed to make a cross on € 2 billion of debt in exchange for their ascent to the capital of the French group. These shareholders, who hold six of the nine seats on the board of directors, have rather interest to repay quickly, this is not exactly the case of the fund, Hayfin, or Anchorage, which have brought in 500 million euros of new debt to Vivarte. The two camps are not on the same wavelength, and any attempt to renegotiate a new debt appears, for the time, extremely complicated management of the group.

strategic Errors in series

Has this debt of 1.3 billion euros, that prevents the group to make the industrial and commercial investments required, in addition to other disabilities, which affect Vivarte since 2007, the date on which PAI Partners has sold its stake in the company to Chaterhouse for… € 3.2 billion.

The management has increased the strategic errors : the shift to digital has not been taken on time, the higher-end of The market, in terms of products and prices, has removed the customer of the brand… not to mention the succession of five chief executive officers in four years, which has not favoured the emergence of a long-term vision capable of reposition Vivarte in the face of competition from H&M, Inditex or Primark, and modernize the stores.

everything comes at a bleak context for the whole of the trade of the textile and clothing industry in France, department stores, traditional channels. Vivarte is not a special case and, despite the 70 % that currently have the windows of The Hall, the lack of activity in the store is obvious.

also Read : C & A, The Halle, Marks & Spencer… brands in traditional clothing are in crisis

key figures

16 000

This is the number of employees before the new restructuring plan, the terms of which will be clarified by Wednesday. The CFDT is concerned 2 000 job cuts.

€ 2.2 billion

This is the turnover in 2015-2016 (fiscal year ended in August), down 8% compared to the previous fiscal year.

1.3 billion

This is the amount of the debt. Its repayment prevents the group from making the necessary investments.

44 million euros

This is the total aid received by Vivarte between 2014 and 2016 under the tax credit competitive employment.


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