La Grande Récré placed into receivership

The French group Ludendo, the owner of the brand of toys, La Grande Récré, has been placed in receivership by the tribunal de commerce of Paris, due to the difficult commercial and financial, announced on Tuesday a spokesperson.

The tribunal, who fixed the period of observation of the company six months, has appointed two judicial administrators, has told the same source. He will be in charge of assisting the company to which the banks have recently refused credit lines, in its search for a solution to its recovery, has explained the spokesperson of Ludendo. A new hearing has been set for may 14, to make the point.

The debt of the company, of the order of 150 million euros, will now be phased-in over ten years, which enable it to blow a little and establish a new strategy. The performance of The Large Recess at Christmas have not been at the level of what had been announced and, in the face of these disappointing results, the banks were not renewed, the outstanding amount of credits allocated to teach each year. This announcement is in line with the worrying situation of the american distributor, toys’r’us, placed under the regime of the bankruptcies in the United States since September.

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The French toy market has finished 2017 on a decline of 0.8% – after four years of growth consecutive – with a turnover of 3.4 billion euros, according to the reference balance sheet of the firm NPD. Founded in 1977 by Maurice Grunberg, the group Ludendo, of which the flagship is La Grande Récré, specializes in the trade of games, toys, fun, and recreation for the child and the family.

Until now, owned 62% by the family holding company of its chairman Jean-Michel Grunberg, the group had announced in December the opening of its capital “in order to find a new majority shareholder”. It is one of the biggest in the sector in Europe, with nearly 400 stores worldwide, 2.500 direct employees and 100 franchisees. In 2017, the company has achieved a sales turnover under the brands of 460 million euros.

(Source AFP)

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