Celio, the ready-to-wear and accessories brand dedicated exclusively to men, present in Morocco, is facing a cash crisis (a loss of nearly 100 million euros in turnover) due to the closure of its stores in France as part of the containment. It remains to be seen whether the brand’s stores in Rabat and other cities in the kingdom are also affected by this crisis.
The founders of the brand, brothers Laurent and Marc Grosman, asked, Monday, June 22, 2020, “to place the company Celio France and its parent company Celio International under the protection of the Commercial Court with the opening of safeguard procedures”. And for good reason, they could not “reach an agreement” with their banking partners to overcome the cash crisis that the brand is going through.
This procedure should allow Celio to “preserve its cash flow for the coming months in order to give itself time in the resumption of commercial activity and to adapt the transformation already underway in 2019”.
This cash crisis is due to the impact of the coronavirus on Celio’s business. “The sudden closure for two months of its 1,585 stores resulted in a loss of turnover for the group of almost 100 million euros between March and May 2020,” said the company.
The company has stores in 46 countries including Morocco. Wouldn’t his stores have the same difficulties? Since the Moroccan authorities had ordered the closure of businesses in the kingdom since the entry into force of the state of medical emergency and containment last March. Pending deconfinement, businesses have recently been authorized to reopen, but at 50%.