DMC posts loss for 2005, reveals financial restructuring plans

31 Mar '06

3 min read

Dollfus Mieg & Cie (DMC), the French manufacturer of clothing fabrics and embroidery yarns, has reported a net loss of €11.8 million, in line with the forecast of between €11 and 15 million informed during the general meeting of February 27th 2006. Turnover reduced by 8.3 percent to €187.3 million.

In this context, DMC actively pursued the rollout of its strategic plan including the following measures:

- Repositioning the Sportswear business through closing the Orangeburg factory in the US and expanding production in Pakistan. The Sportswear business in Europe was particularly resilient in the face of Asian imports, through the creativity and technical characteristics of new designs in corduroy.

- Continued development of the Loisirs & Création chain, with the opening of six new stores in France, in Evry, Saint Quentin en Yvelines, Le Mans, Nice, Brest and Nimes, bringing the total to 19 stores,

- Enhanced investments in marketing DMC Creative World deployed by a new team, with a view to sustaining practice in embroidery, which is in slight decline in Europe and in the US. DMC has nonetheless maintained its market share.

In 2006, after two years of satisfactory Sportswear purchasing and product development in Pakistan, the company will seek to develop a closer partnership. We are looking at, in the meantime, all available opportunities.

The Loisirs & Création chain, leader in leisure handicrafts, will continue to expand by opening three or four new stores. For DMC Creative World, 2006 will be the first year that the marketing strategy developed by the new team will take full effect.

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