The Competition Authority has authorized the takeover of assets belonging to Ludendo (The Great Recreation), placed in compulsory liquidation last year, by the JouéClub group subject to commitments relating to six stores, including the two Starjouet stores in Reunion.
On May 15, 2023, the JouéClub group notified the Competition Authority of the acquisition of assets from the Ludendo group., including 89 businesses operated under the La Grande Récré brand in France and 48 franchise and commercial concession contracts for stores operated under the La Grande Récré and Starjouet brands.. The company EPSE JouéClub is a cooperative society of traders operating toy stores. The JouéClub network now has 220 merchants operating 283 toy stores under the JouéClub brand., most of which are located in mainland France and overseas. The Ludendo group is also active in the toy retail distribution sector in France via stores under the La Grande Récré and Starjouet brands. (including two franchised La Grande Récré stores in Réunion). The operation is part of a collective procedure opened by judgment of the Paris Commercial Court of April 27, 2023, at the end of which the court decided, June 9, 2023, to allocate the aforementioned assets to JouéClub. Following a detailed analysis which led to consulting all of the parties' competitors, the Authority has identified competitive risks in six areas, located in Haute-Corse, South Corsica, in Reunion and in the Aubenas towns, of Rodez and Saint-Gaudens. In these areas, the operation is in fact likely to significantly attenuate competitive activity, and lead to price increases or impoverish the diversity of the offer to the detriment of the consumer, given the absence of other sufficient and comparable proposals.
Réunion concerned by the transfer commitments
To address competition concerns, JouéClub has undertaken to sell, to one or more third parties in the toy retail distribution sector, the integrated stores under the La Grande Récré brand located in these areas. Regarding franchised stores or stores operated in the form of a commercial concession, JouéClub has also undertaken to ensure that the business is sold or, alternately, that the operator signs a new franchise contract (or assimilated) with another toy retail distributor. Are concerned, in the meeting, the two Starjouet stores in the Casabona shopping center in Saint-Pierre and the ZAC du Portail in Saint-Leu. The buyers presented must be approved by the Authority, which will ensure that they will be able to constitute a credible replacement offer in terms of retail distribution of toys, in each of the areas concerned.
Recovery objective with change of brand
Store transfer does not mean store closure, but taken over with change of brand, insists the Competition Authority. The objective is to allow the stores and their activity to be taken over by a competing brand in order to maintain competitive activity in the area concerned and thus guarantee customers a diversified offer in terms of prices and products.. The store transfer process is subject to careful examination by the Authority in the months following the decision authorizing the operation. The authorization holder must propose to the Authority buyers who are capable of ensuring a recovery under good conditions of validity., these buyers must then exercise effective competition. It is at the end of the examination of these buyers that an approval can be issued by the Authority, which will authorize the effective transfer of the store in question.
