The CEO of the French group Ludendo, placed into receivership in mid-march, announced on Wednesday that the AFP have filed a continuation plan for their business, providing a renewed focus on the French market-and its brand-flagship, la Grande Récré.
“We filed Monday, our recovery plan by way of continuation”, which includes the “resolution of the debt by a staggering of the receivables” and the “back to a perimeter that is cost-effective,” said Jean-Michel Grunberg.
The Paris commercial court should give a response to this plan in the second half of July.
Ludendo, number 2 in France behind toys’r’us with 9% market share, had been placed into receivership in mid-march due to the difficult commercial and financial.
104 stores kept
Its debt, of the order of 150 million euros, will be phased-in over ten years. His observation period of six months, to be decided in march by the tribunal of commerce, was upheld at a hearing through may 14.
The plan provides for, inter alia, that the group owned 62% by the family holding company, separates “subsidiaries and stores non-profitable”, particularly abroad (Spain, Switzerland, Belgium): “the closure of 62 stores, is already in progress”.
As well, said Mr. Grunberg, “on the 166 stores in the group, 104 will be retained, those that are “profitable to 97%”.
All in all, some 300 people who will be affected by the measures of reclassification, or dismissal, depending on the leader. At the group’s headquarters, the costs will be reduced in the amount of 10 million euros.
At the end of may, Ludendo announced that it wished to “gradually but quickly close 53 stores in France”, 20% of the network of its brand-a beacon. The group said that a total of 199 stores, including 88 franchises, would remain open.
All creditors, including suppliers, will be paid for, “thanks to our 190 million euros of free cash flow (cash flow available, editor’s note),” assured for his part, Stéphane Cohen of the accounting firm of Wingate, who works with the company.
The plan, conceived as a “very cautious”, provides for “a return to profitability in the order of 13 to 14 million in the next fiscal year,” said Mr. Grunberg, and this “without the contribution of an investment fund”.
Founded in 1977 by Maurice Grunberg, Ludendo is specialized in the trade of games, toys, fun, and recreation for the child and the family.
With sales under group banners of 460 million euros in 2017, with close to 400 stores around the world, 2.500 direct employees and 100 franchisees.