The time is long gone when the textile industry (manufactured since the ^18th century, then mechanized) was one of the jewels of French industry. The deindustrialization that began in the 1970s, and the succession of crises have largely shaken the sector ... More recently, with a drop of 18% in volume and 17% in value, the year 2009 has been described as annus horribilis for the textile industry. At that time, Italy was still resisting competition from countries with low labor costs.

More recently, the Covid-19 pandemic has had a devastating effect: the countries trusting manufacturing were the first victims, blocking all processes. With the quarantine and confinement of China, considered as "the world's factory", the textile sector has suffered enormously.

One of the first brands to report its difficulties was the American retailer Gap. In the^third quarter of 2020, the company suspended dividend payments and used a $500 million credit line to try to overcome the coronavirus crisis. However, in 2021, the brand decided not to operate directly on the European continent.

On the French market, the Hermione People & Brands (HPB) group, owned by Michel Ohayon (Camaïeu, 25 affiliated Galeries Lafayette stores, Go Sport, La Grande Récré, etc.), took over the management of the Gap franchise. HPB's main focus was to set up an online store specifically dedicated to France and fed by the vast catalog of the parent company in the United States.

HPB has also been involved in a number of topical issues such as those of Go Sport and Camaïeu.

The fall of 2022 was marked by the liquidation of Camaïeu in September, then by the placement in receivership of the shoe chain San Marina, former Vivarte asset. Remember that the latter, formerly Groupe André, had already separated from the brands Caroll and Minelli in June 2021.

Then it was the turn of women's fashion brands Cop.Copine, Roseanna, (November 2022) Symbiose, ex Sinequanone (December 2022) or Modetrotter (January 2023) to undergo a receivership procedure.

As for Go Sport, the company finally went into receivership on September 28, 2022, closing 514 stores and leaving 2,600 employees out of work. After its parent company last January, the French subsidiary of Go Sport was placed in receivership on February 2, 2023. Potential buyers have until March 10 to submit their bids.

And since the falls follow one another ... Kookaï sold in 2017 by the Vivarte Group to the Australian Rob Cromb, was placed in receivership by the Commercial Court of Paris on February 1. The company claimed to have "sorely lacked the means and support from banks (refusal of State Guaranteed Loan) to renovate the stores, make Kookaï known to young women and take the digital turn..."

For its part, Pimkie, which was from 1970 to 2000 a flourishing company within the Mulliez galaxy, is also experiencing difficult days. It is indeed about to be sold to a consortium combining Lee Cooper France, Kindy and Ibisler Tekstil. This takeover could lead to the loss of around 500 jobs.

Not to mention the difficulties of Célio, which was placed under a safeguard procedure in 2020... or those of La Halle, which had asked to be placed under the protection of a commercial court, before being bought by the Beaumanoir group.

So why all these failures?

A deep structural crisis, present for a long time

Many brands have not been able to take the turn of the Internet, unlike La Redoute which has managed, in less than four years, to move from a paper catalog considered "has-been" to a powerful e-commerce site. According to a study by the Institut Français de la Mode, one fifth of clothing sales in 2021 will be made online, compared to only 6% twelve years ago. The mid-range positioning is increasingly difficult to maintain in the face of low cost, fast fashion online and a more upscale offer that attracts and retains customers in stores.

What are the reasons for this decline?

The Covid-19 pandemic: businesses considered "non-essential" during the first containment, the majority of textile and clothing stores were closed ... While having to continue to honor their charges and commitments for the most part; the impact on the treasuries was immediate, and unfortunately often fatal.
The demonstrations (yellow vests): Between the broken stores, looted, closed Saturdays, days needed for repair work ... Many have been the stores located in the city centers that have suffered. This was the case of Roseanna, a Parisian brand created in 2007 and placed in receivership in November 2022. The misfortune of this company was to open several stores in the capital in 2019, just before the crisis of the yellow vests and then the global pandemic broke out. The districts in which the sign Roseanna was installed, were deserted by locals and tourists...
Inflation, purchasing power: The increase in the cost of energy, rents and salaries, the repayment of the State Guaranteed Loans (PGE) taken out during the Covid-19 crisis have caused prices to rise in the Textile sector. With the increase in the price of fuel, heating and food, the French are shunning the stores. For proof, in 2022, there are 15% fewer customers in stores compared to 2019.
An evolution of consumption: since Covid-19, consumer behavior has clearly evolved. For example, if we take the shoe segment: 1 out of 3 pairs of shoes is now purchased on the Internet. Customers try on shoes in stores, then place their orders online... Another observation: 1 out of every 2 pairs of shoes purchased now concerns sneakers; these have becomeessential, and are sometimes bought and resold at a high price.
The development of second-hand clothing: in2021, second-hand clothing purchases increased by 51% according to the Natixis Payments Observatory, a jump of 140% in two years. This renewed interest is fueled by consumers' desire to save money while making a responsible purchase. Vinted is one of the "beneficiaries" of the Covid-19 crisis. The brand would occupy the ^6th place of the most visited e-commerce sites in France in the^3rd quarter of 2021, according to the Fevad/Mediamétrie ranking.
The strong competition of low-cost : Kiabi, Naumy, Prymark, Gemo, Shein... Items manufactured in China and Turkey, optimized series with identical models and different colors, fewer pockets, fewer buttons to optimize manufacturing cost and a very wide choice of sizes...
Plagiarism: the company that invokes acts of unfair competition will have to invoke a prejudice generated by these acts. The illicit copy of a textile creation protected by a copyright, a design right or a trademark right is legally qualified as counterfeiting. Knownfor plagiarizing small designers, the Chinese fast-fashion brand Shein is thus in the sights of many French fashion houses.
The slippage of debt: In the Textile sector, the majority of brand takeovers have been carried out with generated debt and the strategy of devoting sometimes up to 40% of results to its financing.

For example, Camaïeu had accumulated 240 million euros in debt, including 70 million for unpaid rent during the health crisis. A sum impossible to reimburse by the company already weakened by the confinement of the spring. Another error observed in some financial arrangements: the brands, sometimes too distinct to become complementary within a new entity, are unable to pool operating costs.

It is therefore a range of reasons, some structural, others more circumstantial, which explain the difficulties of the mid-range clothing sector. The most recent event is that Gap France has just been placed in receivership by the Court of Grenoble on March^1st. It is clear that when certain structures contract a high level of debt, the obligation is to devote a good part of the profits to its repayment and not to invest in a transformation that has sometimes become more than urgent...

We really need to ask ourselves what will happen to the positioning of the mid-range segment between a low-cost segment that is gaining markets and a high-end segment that is consolidating its customer base.

Nevertheless, there are sometimes scenarios tinged with hope. For example, in June 2020, Celio, heavily impacted by the pandemic and the closure of its stores, requested the opening of a safeguard procedure with the Bobigny Commercial Court, in order to "secure the company during the crisis, and take the time to build a robust plan that would enable it to get through this period". This step has just materialized with the validation of the safeguard procedure on September 14.