Investment in receivership for the French subsidiary of Toys'R'Us

The French subsidiary of the US toy distribution giant Toys'R'Us will apply to be placed in receivership following the liquidation of its parent company in the United States in mid-March, do we have learned Friday from the company, confirming an information of the World.

Its general director, Jean Charretteur, announced Wednesday to the representatives of the personnel which he had deposited with the court of commerce of Evry (Essonne) a request for to put the company into receivership, reports the daily. The managing director said he was "very confident", saying he had set up a "shock team to give himself every chance to save the company."

An audience Wednesday

In making this decision, the Objective of Toys'R'Us France is to put in place "a measure of protection to allow the continuity of the negotiations (with a possible buyer) in a secure and serene context," said a source close to the file. The hearing will be held on Wednesday and the decision should be known in September, according to Mr. Charretteur.

This procedure is a "good thing" because it allows "investors already in discussions" with management "to finalize the case" , also said Christelle Jordan, CFDT central union delegate, without specifying the names of these potential investors. In this context, "it can be beneficial for employees," added Ms. Jordan. "The most important thing is the sustainability of jobs," she insisted. According to Le Monde, one of the possible purchasers of the French stores of the sign would be Pierre Mestre, the majority shareholder of the Orchestra group, owner of the brand Prémaman.

In search of a buyer

The project would consist in offering in the same stores the offers of both brands, clothing and childcare on the one hand and toys on the other hand, according to a source close to the file. Maintaining the Toys'R'Us brand will depend on negotiations with lenders who hold the rights in the United States, the source said. Orchestra, whose turnover exceeded € 600 million in 2017 but recorded a net loss of € 20 million, just avoided the cessation of payments, thanks to an agreement to reschedule its debt.

Number 1 in the sale of toys in France, Toys'R'Us announced mid-March that it was looking for a buyer, following the announcement of the liquidation of 735 stores of the sign to United States. "We are studying the measures to be put in place in order to preserve the continuity of the business (of the 53 French stores) as well as the interests of all our (1,300) employees", had then specified Jean Charretteur. In the meantime, he added, "the business continues and our stores are open", thanks to a substantial cash fund.

In 2016, the French subsidiary of Toys'R'Us realized a turnover of business of more than 300 million euros. The French toy sector has been in turmoil for several months: the group Ludendo, owner of the brand La Grande Récré, was placed in receivership in March because of commercial and financial difficulties. Its buyer should be known in the coming days, the commercial court of Paris to choose between an offer filed by the CEO of the group, Jean-Michel Grunberg, and another by Fnac Darty.