These two French children’s clothing brands about to close?

These two French childrens clothing brands about to close

The company, owner of two brands known for dressing children for more than 35 years, is affected by legal receivership. A situation which could endanger hundreds of stores in France. Analysis.

Times are tough for many brands in the fashion and beauty industry. After the headlines on the situation of the Pimkie, André, Kookai, The Body Shop and Yves Rocher brands, it is the turn of two children’s clothing brands to experience economic difficulties. If you are used to shopping, you probably know one of the stores of one of these two major brands. It must be said that they have been shining in the children’s fashion sector for more than 35 years now. One was created in 1986 and the second shortly after, in 1987. If they are so well known, it is because they are appreciated by parents for their comfortable, accessible and always up-to-date clothing. the fashion. Between them, they have more than 800 points of sale in France and abroad. These are the brands Sergent Major and Du Pareil Au Meilleur (DPAM).

On March 14, 2024, the Bobigny commercial court declared the Générale pour l’Enfant group, owner of the brands Sergent Major, Du Pareil Au Meilleur and the Natalys brand, in receivership due to significant financial problems. Already, last year, Du Pareil Au Meme and then Sergent Major, then in safeguard procedure, experienced the same fate. The group’s financial problems are the consequence of several elements. In a press release, the group said it was impacted by “social crises, the Covid-19 pandemic, the energy crisis and inflation” as well as the explosion in costs” of raw materials, rents and electricity. Taken together, the group posted a loss of 100 million euros on its turnover during the pandemic.

To try to recover, at the time, the parent company had planned a restructuring plan, including a “closure or sale of 47 Sergent Major stores and 87 Du Pareil Au Meilleur” In France, according to a source who spoke to AFP. Some stores have since lowered their curtains. In this project, the group also planned to expand internationally and develop its digital strategy to reach 25% of online sales in 2027. However, the efforts apparently were not enough.

Should we fear the permanent closure of the Sergent Major and Du Pareil Au Meilleur brands in France? For the moment, their future is uncertain and it is now up to the courts to decide. A judicial recovery procedure is underway, which means that an observation period, of six months or more, will be set up by a judge, to carry out, among other things, a diagnosis of the company and a plan of recovery. recovery. After this period, the court will have to render its decision and pronounce either a judicial recovery plan or the judicial liquidation of the group, which may lead to the cessation or sale of the activity.