1. Close to the bazaar
The German-based Orsay chain will close 33 of its stores in Hungary due to the coronavirus outbreak. This chain has been in serious financial difficulties and insolvency for a long time. MDO Kereskedelmi Kft. closed its Hungarian subsidiary in 2020 after a loss of HUF1.3 billion. It was announced at the start of May that their Hungarian website would be temporarily closed. Promod and Vagabond, the largest chain of shops in this sector, closed their stores in Hungary in 2021. GAP, Charles Vogele, Marks & Spencer and Charles Vogele also closed their stores in Hungary earlier, but GAP returned later.
2. The name
Orsay was established in 1975 in Willstatt in Baden-Wurttemberg. Its name is derived from Orsay, a small French town. Although it has nothing to do the company, the name is also a tribute to the Musee d’Orsay. This museum of fine arts was one of the most prominent in the world and was moved to the Gare d’Orsay station on the banks the Seine in 1986. Because Orsay is part of the French Mulliez Group which also includes Decathlon, Auchan, and Auchan, the French connection is made anyway.
3. Fashion for the fast paced world
Orsay started out selling teen clothes. They began to serve the younger market as the market changed. Pimkie, a French company that travels in teenage clothes, was also a part of their decision to differentiate themselves from them. Orsay began to target the 40th and 30th generation from 2012. Orsay sold clothes that were cheap, trendy and of high quality, much like other fast fashion shops. Jean-Marc Willer was the head of Orsay in 1992. The collections were changed every two weeks under the banner of fast fashion. Recently, new products are often arriving in stores every month.
4. Expanding
According to Orsay’s website, the company was active in 34 countries until the current downsizing. The company had 740 stores and 5,100 employees. In 1975, the first Orsay store opened in Karlsruhe. The company then expanded in France, Switzerland, Luxembourg, Austria and the Netherlands. The goal was to open stores in Central and Eastern Europe by the turn of the 2000s. The Far East was responsible for half of the clothing sold in stores, while the Far East made the other half.
5. Protection from bankruptcy
The company has been severely affected by the global coronavirus outbreak. All 11 of the company’s Swiss stores were shut down in July 2020. Then, 39 stores were shut down this year. The fact that the majority of Central and Eastern European countries had their stores in shopping centers, which saw a significant drop in turnover, was a major problem for the company. Sascha Bopp was appointed the company’s new CEO in 2021 to help transform it. Orsay received a loan from Germany’s economic stability fund. However, the company became insolvent in November 2021. The company applied for bankruptcy protection. In February, 79 stores were closed and 200 people had been laid off. The Austrian subsidiary became insolvent at the end April. As a result, 51 stores were closed and 239 employees will be laid off.