Thu. Oct 6th, 2022
The Xiaomi store is closing shop in France, we take stock


After the judicial liquidation of the company that was in charge of its management, Xiaomi stores close in France. Goodbye to my store!

xiaomi-mi-store-sevastopol
Xiaomi Store Sevastopol // Source: Frandroid

The Mi Fans who tried to go to the Xiaomi store today, for the most part, found the door closed. From Tuesday, August 23, 2022, at 5:00 p.m., the brand’s physical stores closed the curtain and should not reopen.

In the Instagram accounts of the different businesses we can read the following message: “Our stores had to close their doors, but you can contact Xiaomi customer service at 0805370916 for any outstanding issues. Thank you for following us and good luck to all.»

explanations.

Businesses in suspension of payments

By ruling of 06/07/2022, the Créteil Commercial Court opened a judicial administration procedure for the benefit of SAS Tell Me, the latter which manages Xiaomi’s Mi Stores in France. Consequently, as part of the sale process, it is necessary to value the leasing rights of the six stores operated by Tell Me. Lyons, Toulouse and Lille.

In addition, it is indicated that the shops of Paris Saint-Lazare and La Défense are also closed. According to our observation, only the one located on the Champs-Élysées remains open, because it is managed by another partner according to Xiaomi.

millions in debt

Already in 2021 -long before this sentence- some sellers complained of stock problems in stores. Covid and the shortage that followed have certainly not helped keep these stores, whose costs are necessarily substantial, on course. Whether or not sales were made, Xiaomi Stores had to pay employee salaries as well as store rents, most of which are located in Paris, a city known for its exorbitant rental prices.

For this reason, the company Tell Me has known a current liability of 2,824,863 euros for an estimated available asset of only 210,000 euros (despite a turnover of 9,615,757 euros in 2021). Therefore, the company is in default from June 1, 2022, and the company iHealth Labs Europe, a former shareholder of Tell Me, must assume the rents.

The Tell Me company employs 43 people. At the moment, his future is uncertain, since no dismissal procedure has been initiated.

Xiaomi still exists

For its part, Xiaomi obviously continues its activity in France. Fans of the brand can always buy its products from the official website, from associated online retailers, and even from carriers. Therefore, it is always possible to collect certain Xiaomi products from third-party retailers and after-sales service will apply to all purchases made within the legal warranty period.

In its press release, Xiaomi indicates that it has “taking note of the decision of the Court of Justice of Créteil, which places the company Tell Me, administrator of the Xiaomi Store in France, in forced liquidation, Xiaomi is working to quickly resume its normal activities“. It is not specified whether these “normal activities» refer to the presence in France of physical stores outside the Champs Elysées. Subject to follow.


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This article was translated from this source written by

By SABER

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