New blow for ready-to-wear: the children’s clothing brands Du similar to the same (DPAM) and Sergent Major have in turn added to the long list of brands in difficulty recently placed under the protection of French justice. The group, which owns these two brands, announced that it had been “impacted” by “social crises, the Covid-19 pandemic, the energy crisis and inflation”.

Like its competitors hit by this unfavorable economic situation, DPAM was placed in receivership on Wednesday June 28 by the Bobigny commercial court, while Sergent Major was placed in safeguard proceedings.

The Natalys brand, another brand owned by the General Holding for Children (GPE), is for the moment “spared”, because, “much smaller” than its sisters with its 10 million euros in turnover , she does not know “such serious problems”, explained to Agence France-Presse a source close to the file.

The General Holding for Children, which employs 2,500 people, suffered a 100 million euro decline in turnover during the Covid-19 period “due to the closure of stores during the pandemic”, clarified the same source, according to which the turnover reached 275 million euros in 2022. “The restructuring plan provides for the closure or sale of 47 Sergent Major stores and 87 at Du similar to the same”, all in France , according to her.

GPE has 850 stores in France, Belgium, Spain, Portugal, Italy, Germany, Luxembourg, Slovakia and Switzerland.

The group has unveiled its restructuring plan, including in particular the development of its digital strategy with the objective of achieving 25% of its online sales “by 2027”, with an investment of 5 million euros. It also envisages an “international expansion into new markets (Middle East) and the development of the affiliate network in France and in Europe (Greece)”.

Explosive cocktail

Camaïeu, Kookaï, Burton of London, Gap France, André, San Marina, Kaporal, Don’t Call Me Jennyfer, now DPAM and Sergent Major… These brands well known to the French consumer suffered from an explosive cocktail: pandemic, inflation, rising costs of energy, raw materials, rents and salaries, and competition from second-hand goods. It was fatal for certain brands, which were liquidated, such as Camaïeu in September 2022, whose dismissal of 2,100 employees made a strong impression. Others are in receivership, such as Kookaï or Burton of London.

Without reaching that point, still others are reducing the airfoil, cutting staff and closing stores, such as Princesse Tam Tam, Comptoir des Cotonniers (Fast Retailing group) or Pimkie. These serial difficulties “catch me”, said Wednesday evening on BFM-Business the Minister of Commerce, Olivia Grégoire. “I am concerned about this crisis, but I am keen to say that there are also always brands that are doing well,” she continued without naming them.

Some of the companies in difficulty are also struggling to repay the state-guaranteed loans (PGE) granted during the health crisis. For clothing, the end of the pandemic did not mean a return to the situation before Covid-19: sales remained in 2022 almost 10% lower than their 2019 level, according to Gildas Minvielle, director from the economic observatory of the French Fashion Institute (IFM).

For Olivia Grégoire, “some brands are experiencing an overcapacity crisis with sometimes two stores in the same pedestrian street. This imposes three things on the players: to commit to the second-hand path, to personalize the approaches much more and to strengthen the “digital” strategy, she insisted on BFM-Business.

“Since the beginning of the year, 10,000 jobs have disappeared”, estimated last week Yann Rivoallan, president of the Federation of women’s ready-to-wear, on the sidelines of the parade of the Chinese giant of “fast fashion” SheIn, which he accuses of “destroying French jobs”.