Rakuten France, formerly PriceMinister, will close permanently on Thursday

The online marketplace Rakuten will cease trading on October 1, according to a banner on its website stating that “from that date, no new purchases or sales will be possible.” This brings to a close a French e-commerce venture that began under the name PriceMinister.

“Despite the group’s efforts to complete a sale of the business, in-depth discussions with potential buyers have not led to a viable solution,” the Japanese company’s French subsidiary said in July. “A transition period will remain in place until November 10, 2026 to allow sellers and buyers to complete the final necessary steps,” management told AFP. Around 180 employees are affected.

When contacted by AFP, management said that “the support measures proposed by the company were welcomed by the CSE (Social and Economic Committee, editor’s note),” and “were subsequently approved by the competent authorities on August 6.”

The Japanese group Rakuten acquired PriceMinister in 2010 and has since invested, notably in modernising the platform. The name PriceMinister was replaced by Rakuten France in 2018. However, “the number of customers has fallen by 33% over 10 years and traffic has declined by 42% over the same period,” management reported in May.

The online platform, a marketplace dedicated to third-party sellers, sells electronic devices, household appliances, toys, clothing, furniture, etc. It will also close in Spain, as the two markets share the same infrastructure.

In an effort to turn around both its business and its finances, the company pursued several initiatives, notably focusing on the second-hand market, and in 2022 launched the ‘Fulfilment Network’ service, putting its logistics capabilities at the disposal of third-party businesses and retailers. In 2023, it carried out a major share issue with the aim of reducing its debt, before setting out to find a buyer.

However, according to management, no offer met the three criteria set: preservation of jobs; the financial terms of the offer and associated risks; and the ability to ensure the long-term sustainability of the business.

Likewise, the Social and Economic Committee (CSE) issued a negative opinion on these proposals. In July, the French e-retailer Pixmania, which had expressed interest, condemned the rejection of its bid.

The technology specialist (smartphones, tablets, etc.) said it had been unable to present its plan to staff — a plan intended to “save several dozen jobs” — and added that it “feared its bid had merely been a formality” to comply with the Florange Act — which obliges an employer to seek a buyer in the event of a proposed closure — “in the face of an international management team that had already made up its mind.”

Pixmania said it was “extremely” disappointed “not to have been able to preserve” a business representing “more than 2,500 sellers” and “more than 400 million euros in gross merchandise volume,” and insisted that its bid was “financially backed” by its main shareholders, including Xavier Niel.

The Rakuten Group employs more than 25,000 people across 30 countries. For the financial year ending in December, the group generated global revenue of 2,500 billion yen (approximately 15.3 billion euros), up 9.5% year on year. EBITDA, meanwhile, jumped by 33.7%, driven in particular by the mobile business, to 435.9 billion yen (194.9 million euros).

FashionNetwork.com with AFP