ORCHESTRA-PREMAMAN (EPA:KAZI) Orchestra Prémaman presents the reorganization plan to ensure its sustainable recovery.

Transparency directive : regulatory news

17/02/2020 15:30

February 17, 2020

ORCHESTRA-PREMAMAN PRESENTS THE REORGANIZATION PLAN TO ENSURE ITS SUSTAINABLE
                             RECOVERY

The Orchestra-Prémaman Group presents today a project for the reorganisation
of its activities to its employee representative organizations, as well as to
its employees.

This reorganization project would thus support and accelerate the necessary,
solid and sustainable Group's recovery, already initiated since the opening of
safeguard proceedings on September 24, 2019.

This reorganization is illustrated by the Group's focus on its five main
markets (France, Belgium, Switzerland, Morocco and Greece), which implies the
closure of 81 stores (by way of liquidation) abroad and also includes the
transfer of activity from the warehouses of Saint-Aunès and Saint Jean de
Vedas to Arras warehouse, and the net loss of 25 jobs at the company's
headquarters.

In total, this reorganization should lead to the abolition of 149 positions in
French stores, 115 logistics posts, 38 posts at headquarters to which are
added approximately the loss of 300 staff positions abroad and lead to the
creation of 13 posts at headquarters as well as an additional 130 jobs
through the transfer of activity from the warehouses of Saint-Aunès and Saint
Jean de Vedas to Arras warehouse in the joint venture Orlog (proposed as post
reclassification), it being specified that the Group currently employs 2,920
employees.

An essential reorganization plan for a necessary and sustainable recovery

The reorganization plan provides for six main measures:
- Refocusing on strategic markets (France, Belgium, Switzerland, Morocco and
  Greece). This represents the greatest effort of this plan with the closure
  of 81 stores aboard, including 73 in Germany, in Spain and in Luxembourg and
  also in Belgium (66% of the Belgian store fleet), representing approximately
  300 job losses.
- Restructuring of the French network, to the benefit of large format stores
  and digital with the closure of 44 stores (including 36 branches representing
  a total of 149 employees) out of the 304 today.
- Refocusing the commercial offer on fewer products, with in particular the
  decrease in the number of textile items.
- Development of digital activity and new multichannel services
- Consolidation of all logistics activity in the Arras warehouse, involving the
  transfer of activity from the warehouses of Saint-Aunès and Saint Jean de
  Vedas (115 employees) to that of Arras (creation of 130 jobs, in the joint
  venture Orlog, which are proposed as reclassification of posts to the
  employees of Orchestra-Prémaman).
- Improving operational performance with organizational simplification
  measures: redefining the purchasing strategy with notably the halving of the
  number of suppliers and the closure of the purchasing office in Shanghai
  relocated in Hong Kong, optimizing functions of the headquarters, leading to
  a headcount reduction at Group headquarters (net loss of 25 positions - i.e.
  38 losses and 13 creations).

The Group estimates that its turnover will be negatively impacted by EUR71m on
a full-year basis, including EUR 23.5 million in France (estimates based on the
sales for the current financial year). Compared to the accounts as at the
February 28, 2019, the group estimates assets would decline by EUR11m
corresponding to the intangible and tangible fixed assets scrapped. The other
impacts on the balance sheet are estimated as non-significant.

The first estimate of the cost of the Employment Protection Plan in France is
EUR6m. This amount constitutes the best possible current estimate of the cost
of the EPP in France and as such includes all costs. This will be financed by
the Group, in particular through the accelerated transformation of inventories
into cash via the liquidation of stores which will be closed.

In addition, it should be noted that the safeguard proceedings opened on
September 24, 2019 in favor of Orchestra-Prémaman SA takes a normal course.
The reorganization plan presented in this press release will be included in
the reorganization plan which will be presented to the Montpellier
specialized Commercial Court (Tribunal de Commerce spécialisé de Montpellier),
the date of presentation of the plan still to be defined.
It should also be noted that a Hearing with the Montpellier specialized
Commercial Court (Tribunal de Commerce spécialisé de Montpellier) is set for
March 17, 2020, Hearing at which the opening of a second observation period of
6 months should be requested.

The priority of Orchestra-Prémaman is today to work on maintaining the
employment of staff concerned and continuing its recovery. This project is
currently submitted for the consultative opinion of the employee
representative organizations.

The trading of shares on Euronext Paris, suspended since February 17, 2020,
will resume on February 18, 2020.

                            Next appointment
    2019/2020 fourth quarter Revenue: April 14th, 2020 after SE closing

                                Contacts:
         ACTIFIN - Stéphane RUIZ - 01 56 88 11 15 - sruiz@actifin.fr
   ACTIFIN - Victoire DEMEESTERE - 01 56 88 11 24 - vdemeestere@actifin.fr
          PRESS - Isabelle Dray - 01 56 88 11 29 - idray@actifin.fr

                           ORCHESTRA-PREMAMAN
           A public limited company with capital of EUR12,159,825
    Headquarter: 200 avenue des Tamaris, Zac Saint Antoine, 34130 Saint-Aunès.
Registration n°: 398 471 565 in the Montpellier Trade and Companies Register

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