Weakened by its debt, the Cameo is placed in backup procedure
The weight of the debt tipped Cameo in the crisis. Modacin, the financial holding company that owns the brand of ready-to-wear women's clothing, has been placed under the safeguard procedure by the tribunal de commerce of Lille. A judicial administrator was appointed. "It is a technical procedure intended to set a framework for discussions with the creditors of the Cameo," explained a spokesperson for the brand roubaisienne.
Believing him, the Cameo would be no risk of failure. Leader of the ready-to-wear for women in France since the 1990s, the brand was founded in 1984 in Roubaix by members of the family Mulliez, shareholder of the group Auchan, which operates 654 stores. In France, its reputation is close to 93 % with his favorite target, women aged over 25 years. The brand is also present abroad where it aligns 248 stores.
This heavy weight of the distribution of women's fashion, which employs over 6 000 employees, is no less confronted with the fall of the consumption of clothing. For the past ten years, the French market is experiencing a decline in sales. Between 2006 and 2016, it has lost nearly 14 % of its value. And since then, despite a slight recovery in 2017, the market has not recovered health.
The company is facing the pangs of the firms that have been the subject of a purchase by a leverage effect, that is to say, an acquisition by borrowing
The cameo has so far weathered the storm. Its turnover has certainly lost 2.4 % in one year (718 million euros at the end of the last fiscal year ended at the end of march 2018). But its profitability has slightly improved its operating income reached $ 85 million, versus 82 million euros at the end of march 2017). The direction the sign points out how the Cameo is not in danger.
Then why did you call this backup procedure with the commercial court of Lille ? This precautionary measure is of use in businesses that…