After judicial liquidation of the company which took care of their management, the Xiaomi stores are closing in France. Farewell My Store!
Mi Fans who tried to go to the Xiaomi store today have – for the most part – found the door closed. Since Tuesday, August 23, 2022, at 5 p.m., the brand’s physical stores have drawn the curtain and they should never reopen.
On the Instagram accounts of the various shops, we can read the following message: “Our stores had to close their doors but Xiaomi customer service can be reached at 0805370916 for any ongoing subject. Thank you for following us and good luck to all. »
Shops in receivership
By judgment of 06/07/2022, the Commercial Court of Créteil opened receivership proceedings for the benefit of SAS Tell Me, the latter managing Xiaomi’s Mi Stores in France. Consequently, as part of the disposal process, it is necessary to value the lease rights of the six stores operated by Tell Me. Lyon, Toulouse and Lille.
In addition, it is indicated that the shops in Paris Saint-Lazare and La Défense are also closed. According to our observation, only the one located on the Champs-Élysées remains open, because managed by another partner according to Xiaomi.
millions in debt
Already in 2021 – well before this judgment – some sellers complained of stock problems in the shops. The Covid and the shortages that followed have certainly not helped to maintain the course of these shops, the costs of which are necessarily substantial. Whether sales took place or not, the Xiaomi Stores had to pay the salaries of the employees as well as the rents of the shops, most of which are in Paris, a city known for its exorbitant rental prices.
For this reason, the Tell Me company has known current liabilities of 2,824,863 euros for available assets estimated at only 210,000 euros (despite a turnover of 9,615,757 euros in 2021). The company has therefore been in default of payment since June 1, 2022, the rents having to be borne by the company iHealth Labs Europe, a former shareholder of Tell Me.
The Tell Me company employs 43 people. For the time being, their future is uncertain, as 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 online partner retailers and even from operators. It is thus always possible to pick up certain Xiaomi products from third-party retailers and the after-sales service of all purchases made within the legal warranty period will be applied.
In its press release, Xiaomi indicates that it has “taken note of the decision of the Court of Justice of Créteil, placing the company Tell Me, manager of the Xiaomi Store in France, in compulsory liquidation, Xiaomi is working to quickly resume normal activities“. It is not specified whether these “normal activities» relate to the presence in France of physical stores outside of the one on the Champs Élysées. Case to follow.
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