World News

Fnac Darty said to be considering La Grande Récré rescue

Published on: July 10th, 2018

The French entertainment and electro chain is looking into the possibilities of saving the toy store chain La Grande Récré.

In March, the 1,600 employees of France’s largest toy store chain were told that owner Ludendo had sought protection from creditors at a Paris court, citing an ever shrinking toys market and increasing competition from online players like Amazon and Cdiscount.

Last month, a plan was launched to reboot La Grande Récré with only its 104 most profitable French stores, closing 62 stores in France itself and all 16 stores in Belgium, while aiming to sell the stores in Spain and Switzerland.

A third of all jobs in the chain’s headquarters would also be cut and the repayment of the 153m euro in debts will be spread over the next ten years.

As it turns out, Fnac Darty has also filed a plan to save La Grande Récré: according to French newspaper Le Figaro, the electronics chain would also like to keep the 104 stores open. Fnac Darty would not be willing to take over La Grande Récré’s debts however, making this acquisition somewhat less likely.

Fnac’s interests in the toy store chain are no surprise, in 2012 the then Fnac CEO Alexandre Bompard stated that he would like to invest more in the toys market in order to diversify his company’s range.

A judge will decide which plan will be called upon to save the chain at the end of this month.

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