DIY chain Mr Bricolage to close 17 French stores, cut jobs

Mr Bricolage SA

16/11/2016 15:13

PARIS, Nov 16 (Reuters) - DIY chain Mr Bricolage  MBRI.PA  
said on Wednesday it would close 17 loss-making stores in France 
next year and cut 238 jobs or 9.5 percent of its workforce under 
a new turnaround plan. 
    The plan, which will also see most of its 87 directly-owned 
stores in France sold to franchise holders, will result in 
estimated provisions of around 65 million euros ($69.5 
million)and weigh on the group's 2016 earnings. 
    "This resizing of the integrated store portfolio will give 
the group's additional leeway to invest and develop its 
business," the company said in a statement. 
    Mr Bricolage, which competes with the likes of Bricorama, 
Brico Depot and Leroy Merlin in a fragmented French market, saw 
its net profit slump 31.5 percent to 9.6 million euros in 2015 
on revenue down 2.7 percent to 529.5 million. Directly-owned 
stores suffered an operating loss of 12 million euros last year. 
    Under the plan, Mr Bricolage will sell 30 directly-owned 
stores within two years and as of 2017 invest 13 million euros 
in another 30 shops before selling them as well at a later 
point. 
    Mr Bricolage was the target of a failed bid by Kingfisher 
 KGF.L , Europe's largest home-improvement retailer, in 2015. 
    It has a total network of over 800 stores, the bulk of which 
are owned by independent DIY retailers, in 12 countries and a 
total workforce of 2,507. 
   Shares in Mr Bricolage were suspended on Wednesday ahead of 
the release of the statement. They closed at 12.99 euros on 
Tuesday and will resume trading on Thursday. 
    ($1 = 0.9347 euros) 
 
 (Reporting by Dominique Vidalon; Editing by Leigh Thomas) 
 ((dominique.vidalon@thomsonreuters.com; +33149495432; Reuters 
Messaging: dominique.vidalon.reuters.com@reuters.net)) 
 
Keywords: MRBRICOLAGE STRATEGY/