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If you read our articles on Nuit France, you know that the ready-to-wear sector is going through a period of crisis. Between the French disenchantment with physical stores and competition from online storesmany companies are in great difficulty.
The Toulouse commercial court has just placed the company Standard SAS in receivership. This gives him a few months to balance the finances and pay off the debts. Otherwise, a judicial liquidation could occur. While the name of the company may not mean anything to you, you know the brands it owns.
Stores that look dull
The deep crisis continues. It has been in the ready-to-wear sector for four years now. And the consequences are harsh, with numerous store closures. Brands are disappearing and leaving employees unemployed.
It must be said that the stores are emptying. There are several reasons for this. First, the purchasing power of the French is at its lowest. Due to galloping inflation, they are putting aside small pleasures. And if, however, they afford extras, they turn to economical options.
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Thus, the fast-fashion sector is not suffering from the crisis (or less), just like online sales, which are exploding. Ditto for the second hand, which is doing well. The Vinted application continues to be very successful. If this drop in store attendance is not a disaster for certain brands, for others, This is much more problematic.
Popular brands in danger
The case of Standard SAS, which owns the Teddy Smith and Blue Box brands, is added to the list of companies in difficulty. According to the daily La Dépêche, this court decision results in particular from recent logistical problems, such as delays in deliveries via the Suez Canal.
However, these delays are not the only causes of this crisis. The rise of e-commerce platforms and fast-fashion giants like Primark, Zara and H&M is putting additional pressure on the group. Employees helplessly note a drop in footfall in stores.
Despite these difficulties, the Teddy Smith brand continues to stay afloat. In 2023, it generated a turnover of nearly 66 million euros and a net result of 736,000 euros, which suggests a financial balance. However, the parent company Standard SAS shows a significant loss of almost 1.5 million euros on a turnover of 58 million euros, which justifies the placement in receivership.
An uncertain future?
This placement in receivership does not mean that the stores will close. The court will observe the company for six months. She benefits from this period of time to recover.
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Indeed, this period will allow the company to put in place a viable recovery plan in order to avoid a more severe restructuring. Jobs, for the moment, are not threatened. So, the 400 employees of the Teddy Smith and Blue Box brands keep their jobs.
Fans of the brands can, for the moment, rest assured. But the stores will have to succeed in convincing the French. And that’s no small feat.
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