On 15 May 2023, the JouéClub group notified the Autorité de la concurrence of the acquisition of assets belonging to the Ludendo group, of which 89 business assets operated under the La Grande Récré banner in France and 48 store franchise and commercial concession contracts operated under the La Grande Récré and Starjouet banners. 
                
          
        
            The transaction and the parties



EPSE JouéClub is a cooperative chain of toy stores. The JouéClub network has 220 members, operating 283 toy stores under the JouéClub banner, primarily in mainland France and the French overseas territories.



The Ludendo group is also active in the toy retailing sector in France, via stores operated under the La Grande Récré and Starjouet banners.



The transaction is part of the insolvency proceedings (procédure collective) opened by decision of the Paris Commercial Court on 27 April 2023, at the end of which the Court decided on 9 June 2023 to assign the aforementioned assets to JouéClub.

The competition risks identified



Following a detailed analysis during which the Autorité consulted all the competitors of the parties, the Autorité identified competition risks in six areas: the départements of Haute-Corse and Corse-du-Sud, Réunion Island and the conurbations of Aubenas, Rodez and Saint-Gaudens.



In the aforementioned areas, the transaction is likely to significantly affect competition and lead to price rises or a reduced offering to the detriment of consumers, given the lack of sufficient and comparable alternatives. 

The commitments



To address the competition concerns, JouéClub has committed to divesting – to one or several third parties active in the toy retailing sector – the stores operated under the La Grande Récré banner in the aforementioned areas. Regarding franchises and stores operated as commercial concessions, JouéClub has also committed to the business assets being divested or, alternatively, to a new franchise (or similar) contract being signed between the operator and a third party active in the toy retailing sector.



The stores concerned by the commitments are the following:
      
      
      

                
          
              

  
  
      
      
                        Area
                      Banner
                      Type of commitment
                      Address
            
    
  
      
                      
                      Aubenas
                      La Grande Récré
                      Divesture of business assets
                      2 Rue des Châtaignes, 07200 Aubenas
                  
                      
                      Saint-Gaudens
                      La Grande Récré
                      Divesture of business assets
                      Centre commercial Leclerc, Avenue du Cagire, 31800 Estancarbon
                  
                      
                      Corse Nord
                      La Grande Récré
                      Signature of a new franchise (or similar) contract or divesture of business assets by the store operator
                      CC Santa Devota, 20290 Borgo
                  
                      
                      Corse Sud
                      La Grande Récré
                      Signature of a new franchise (or similar) contract or divesture of business assets by the store operator
                      Avenue Georges Pompidou, 20137 Porto-Vecchio
                  
                      
                      La Réunion
                      Starjouet
                      Signature of a new franchise (or similar) contract or divesture of business assets by the store operator
                      Centre commercial Casabona, 22 Allée de la Piscine, Saint-Pierre 97410, La Réunion
                  
                      
                      La Réunion
                      Starjouet
                      Signature of a new franchise (or similar) contract or divesture of business assets by the store operator
                      ZAC Portail, 23 Rue du Moulin, Saint-Leu 97424, La Réunion
                  
          
    
  

      
      

                
          
        
            

The commitments will ensure that sufficient competition is maintained and that consumer interests are protected in the markets concerned.



The proposed buyers will need to be approved by the Autorité, which will ensure their ability to provide a credible toy retailing alternative in each of the areas concerned.



Based on the analysis conducted by the Autorité, the need for a commitment concerning the Rodez area was ruled out, on the grounds that no buyer other than the JouéClub was identified to take over the La Grande Récré store in Onet-le-Château, despite a large market consultation. The Autorité considered that in such a situation, it was preferable to clear that transaction with the parties in a strong position in the area, rather than to see the store inevitably close for lack of a buyer or to prohibit the entire merger for such reason alone.

Store divestitures do not mean store closures, but takeovers with a change of banner



The store divestures covered by the commitments are intended to safeguard adequate local competition.



The aim is to allow a competitor to take over the stores and their activities in order to safeguard competition in the area concerned, thereby ensuring that consumers have a diversified offering in terms of prices and products. The store divestiture process is closely monitored by the Autorité in the months following the decision to clear the transaction. The party cleared to carry out the transaction must present to the Autorité buyers capable of ensuring a valid takeover and then providing effective competition. Once the buyers have been examined, the Autorité can issue an approval, which will clear the effective divestiture of the store in question.



The divestitures do not therefore entail the closure of the stores, but a takeover with a change of banner.



The text of the decision will be published soon.
      
      
      

                
          
        
          
            24-DCC-129 of 19 June 2024
      
          
            regarding the acquisition of exclusive control of Ludendo group assets by JouéClub
      
        
                  
            
            See the full text (in French)
      
          
              
      

                
          
  
    Contact(s)
          
                
          
              
          
        
              


      
      
      
  
    
      
            Nicola Crawford
      
      
            Communication officer
      
    
    
      
            +33155040151
      
      
     Contact us by e-mail

Autorité Clears JouéClub's Acquisition of Ludendo Assets with Divestiture Commitments

The JouéClub group notified the Autorité de la concurrence of acquiring assets from the Ludendo group, including 89 La Grande Récré stores and 48 franchise contracts. The transaction was part of insolvency proceedings.

JouéClub and Ludendo are both active in the toy retailing sector in France. The Autorité identified competition risks in specific areas where the transaction could impact competition, leading to price increases or reduced offerings for consumers.

To address competition concerns, JouéClub committed to divesting stores in certain areas and ensuring that sufficient competition is maintained. The Autorité will approve the buyers to ensure they can provide a credible alternative in each area.

The store divestitures aim to maintain local competition by allowing competitors to take over stores with a change of banner, ensuring consumers have diverse options in terms of prices and products. The divestiture process will be closely monitored by the Autorité.



Takeover of assets belonging to Ludendo (La Grande Récré) by the JouéClub group: the Autorité clears the transaction, subject to commitments concerning 6 stores

Autorité Clears JouéClub's Acquisition of Ludendo Assets with Divestiture Commitments

The Autorité de la concurrence approves JouéClub's takeover of Ludendo assets, subject to divestiture commitments for 6 stores, to address competition concerns.