Plan to divest directly-owned stores moving forward
Robust performance by the member and affiliate network
Orléans, France, 30 December 2019 - Mr.Bricolage, which groups together local
independent home improvement and gardening stores, is presenting an update on
progress with the divestment plan relaunched in December 2018.
- The Group management team is fully focused on the plan to divest
directly-owned stores in order to find a relevant solution for the
economic and social position of each directly-owned store. Thanks to the
work accomplished by the head office and field teams, and the dedication
shown by the network's members-entrepreneurs, 59(1) of the 65 directly
owned stores at 13 December 2018 have been taken over, with 1,019 jobs
maintained. In line with the commitments made by the Group, the majority
of the directly-owned stores have been sold to members-entrepreneurs.
However, it has not been possible to find a divestment solution yet for
six directly owned stores: the subsidiaries concerned will now need to
consider closing them. The proposed closures of these stores are being
presented to the employee representatives today.
- Alongside this, notably following the financing agreement signed in August
2019, the REBOND plan's actions to modernize the brand and further
strengthen its competitiveness are continuing to move forward and are
reflected in a further improvement in performance for the member and
affiliate networks. At 30 November, the Mr.Bricolage member network's
volume of business shows year-on-year growth of +2.09%(2) on a home
improvement superstore market that is up +1.82%(3). At 30 November, the
Group's French and international network(4) had 782 stores, compared with
781 at end-2018.
- Following the suspension of Mr.Bricolage's share price this morning, as
requested by the Company, the listing of Mr.Bricolage shares will resume
on 2 January 2020 at start of trading.
"The outstanding levels of dedication shown by the teams from the head office
and Mr.Bricolage network members have made it possible to divest 59 of the 65
directly-owned stores that the Group had in December 2018, with about 85%
placed with our members. Despite the many different solutions looked into, it
has not been possible to find a sustainable buyout solution for six stores in
particularly difficult positions; that is why their closure is being
considered today. Naturally, we regret this situation. However, we have a
duty to ensure the Mr.Bricolage Group's financial stability in order to
safeguard the long-term viability of a group of members-entrepreneurs that
has a total of over 10,000 staff. During this period, our efforts are focused
on supporting each of the employees concerned and we are of course still open
to new opportunities for these stores to be taken over. The completion of
these next steps is key in order to sustainably reestablish the Group's
competitiveness. The Mr.Bricolage Group has been modernized, its financial
position is now healthier and it is realigned around its core assets, and it
is moving forward with its ambition to become the market leader for
local-format stores on its market, capitalizing on the relevance of the model
which it has built its success over the past 40 years: combining (1) the
performance of a network of stores owned by entrepreneurs and (2) the strength
of a central listing unit and competitive services", confirms Christophe
Mistou, Chief Executive
Officer of Mr.Bricolage.
(1) Of which, 6 stores are still in the process of being taken over, with an
effective date scheduled during the first half of 2020.
(2) Volume of business on a like-for-like store basis excluding directly-owned
stores sold in 2019.
(3) Source: Banque de France like-for-like index.
(4) All member and affiliate network stores.
I - Plan to divest directly owned stores moving forward
To date, 59 sales(1) have been completed successfully thanks to the extensive
work carried out by Mr.Bricolage's teams to find and support qualified buyers.
Together, these 59 stores represent 1,019 jobs. In line with the commitments
made by the Group, the majority of the directly owned stores have been taken
over by members-entrepreneurs (49 stores(5) reintegrated into the network) who
have shown outstanding levels of commitment, benefiting everyone. During these
12 months, all the takeover offers have been carefully reviewed in order to
give priority to those making it possible to (1) ensure the store's
sustainability and (2) safeguard employees' jobs. The sales were carried out
under the financial conditions estimated by the Group at the end of June
However, to date, it has not been possible to find a satisfactory solution for
six directly-owned stores in France with Mr.Bricolage Group network
members-entrepreneurs or external buyers. Acknowledging this situation, their
closure is being considered. This concerns the stores in Allonne (60),
Brive-Mazaud (19), La- Roche-sur-Yon (85), Lexy (54), Montereau (77) and
Orléans (45). The proposed shutdowns of the subsidiaries concerned, presented
to employee representatives and staff on this Monday 30 December, involves a
reduction of 170 positions. In-depth social dialogue will be established under
good conditions with all the employee representatives.
The progress with the divestment plan is supporting the Mr.Bricolage Group's
realignment around its "Network Services" business. It is making it possible
to prepare for the shutdown of the directly-owned stores whose persistent
difficulties have significantly affected the Group's economic and financial
position, impacting investments to modernize the brand and develop the
competitiveness of the member and affiliate networks. The Group's accounts
for 2019 will reflect all the costs relating to these proposed shutdowns
(including the cost of social support and other expenses linked to closing
the stores and returning the premises), currently estimated at EUR9.2m.
II - Mr.Bricolage Group outlook for 2020
Realigned around its core "Network Services" business, in 2020, 40 years after
the brand was launched, the Group is moving forward with four main goals,
continuing to build on its REBOND roadmap:
* Implementing the proposed shutdowns and closures presented above under the
best possible conditions;
* Continuing to optimize network services and accelerating the development
of value-creating actions: renewing the product selection and pricing
management tools, standardizing the information systems, maintaining
marketing investments the Inventiv brand and in-store footfall, and
deploying the new customer services platform;
* Continuing to develop the network of branded and affiliate stores to
achieve the ambition for 1,000 points of sale by 2028;
* Accelerating the rollout and implementation of the "four pillars" concept
across the network. To date, 10 Mr.Bricolage stores offer the four retail
The Mr.Bricolage Group, which develops the well-known brands Mr.Bricolage and
Les Briconautes, is the French specialist for local independent DIY retail,
with 712 outlets (as of Nov. 30th, 2019) operating under the brands or through
affiliates. Internationally, the Group is present in nine other countries with
69 stores. Mr.Bricolage SA is listed on Euronext Paris(6) (ISIN FR0004034320 -
* Marie Calleux, email@example.com - 01 53 65 68 68 (financial press)
* Louise Chaulin, firstname.lastname@example.org - 07 83 35 96 93 (corporate
For more information about the Mr.Bricolage Group, visit www.mr-bricolage.com
(5) The procedures of the Internal Rules have been applied; transfers to
members did not fall under the regime of regulated agreements.
(6) cf. press release of Dec. 4th, 2019: proposal to transfer the listing of
Mr.Bricolage shares to Euronext Growth Paris. This proposal, without
issuing any new shares, aims to streamline the costs and constraints
involved with listing on the regulated market Euronext Paris. It will be
submitted for approval by shareholders during a general meeting scheduled
for 22 January 2020.