Econostrum | Economic News in the Mediterranean



NewOrch raises €19.5m to relaunch Orchestra shops

Orchestra was taken over in June 2020 (photo: DR)
Orchestra was taken over in June 2020 (photo: DR)
FRANCE. Three months after Orchestra was taken over by its owner Pierre Mestre at the bar of the Montpellier Commercial Court, the company NewOrch, created for the occasion, raises €19.5m from Acofi Gestion, manager of the Predirec ABL 2 fund.

To finance the takeover and support its restructuring, in addition to the equity provided by shareholders, the children's clothing and childcare articles shop chains (Orchestra and Prémaman) will benefit from a €12m medium-term line, guaranteed on the stocks held by NewOrch SAS, and a shorter-term line of €7.5m.

The Montpellier Commercial Court ruling of 19 June 2020 provided for the takeover of 1,110 employees and 2,659 indirect jobs, as well as the payment of a €35.5m sale price (€15.5m on signature of the deeds and the balance over 48 months) plus €35.6m in charges increasing the price.

Pierre Mestre, founder of the brand in 1995 in Saint-Aunès (Hérault) with his wife Chantal, will keep 430 sales outlets (255 in France, 379 of which are integrated) worldwide out of the 514 existing ones. He will keep only one warehouse, that of Arras (childcare articles and complete parcels of textile articles), owned by the Orlog joint venture. The Saint-Aunès warehouse (decolumised items shipped individually and delivery of web orders) and the Saint Jean de Vedas warehouse (management and preparation of materials for shop fixtures) will therefore be closed. By reducing the cost of logistics as a percentage of turnover, this grouping could lead to a full-year gain of €3.7 million from 2021.
At the same time, the buyer intends to reduce the number of references by 25%, particularly in the textile sector.

Frédéric Dubessy

Monday, September 14th 2020

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