Orchestra-Prémaman lowers guidance, asks state to stagger maturity dates

Struggling French childrenswear specialist Orchestra-Prémaman announced on Friday that it has lowered its financial guidance for 2018/19 and requested that its maturity schedule be staggered. 

The group stated in a press release that it has approached the French government "to ask for temporary treasury support through fiscal and social maturities spread out, which will require agreement by bank and bondholders’ creditors to support the implementation of these measures."

The group also announced that it has revised down its predicted EBITDA for 2018-19, claiming that its business continues to suffer due to the effects of France's "yellow vest" protests.

"A reduction in margins [has driven] the Group to revise downward its annual EBIDTA outlook within a range from 1% to 2% of turnover (against 5% to 6% previously)," Orchestra-Prémaman explains. "However, the 2018/2019 revenue forecast published in the press release issued on November 23, 2018 within 557 and 570 million euros remains unchanged."

According to the company, "its business is still strongly impacted by a difficult economic and social environment due to social movements in France," and its turnover for November fell 8% in comparison to the prior-year period. In December, this decline was limited to 5%. 

Falling sales have been casting a shadow over the future of Orchestra-Prémaman for some months now. 

On 26th June, the group, whose debt amounted to 320 million euros on 28 February 2018, announced that it had come to a restructuring agreement with its lenders.

At the time, the company obtained an extension "until July 2020 and, should certain conditions be met, until July 2021 from the majority of banking facilities [...] for a total sum of 209.2 million euros."

As stipulated by this agreement, Orchestra-Prémaman launched a capital increase of 28.6 million euros in September of last year.