Ymagis to curtail losses by placing part of Eclair division in receivership

[DCI forum]

The business concerned is Eclair Cinema SAS. According to the European specialist in digital technologies for the film industry, this 'decision aims to contribute to a return to profitability for the Eclair business unit and to secure the Group's future activities'. As Eclair Cinema represented 5.5% of Ymagis Group's revenue for the first half of 2018 but almost all losses recorded over this same period. In 2017, the subsidiary generated revenue totalling €12.4M.

Eclair Cinema mainly focuses on the French market in the post-production and restoration sectors, activities which are severely affected by: (i) fierce competition, (ii) shrinking markets in terms of volume and value, and (iii) the announced decline in restoration project financing by public bodies.

The wider Eclair business unit, eaving behind its French restoration activities, concentrate its efforts and investments on its adaptation activities (subtitling, dubbing), digital distribution, preservation and content delivery to cinemas (films, live events, etc.) and on the digitalisation of its services. The implementation this year of the EclairTrack and EclairPlay platforms which use the EclairBox and EclairExpress technological solutions are the first positive results of this policy, which will continue in the coming weeks with new platforms for rights-holders being brought to market (EclairSend, EclairScreener and EclairStore, among others).

Eclair Color, the company's HDR for Cinema service is not mentioned, it clearly must be of limited impact, sofar.

Subject to the decision of the Commercial Court of Nanterre , Eclair Cinema plans to implement a thorough restructuring of its activities, refocusing them towards specialisation in an innovative service offer for creative teams and post-production laboratories, and adjusting its production capacities in restoration. It reflects the Group's determination to steer its activities towards promising sectors and profit margin contributors.

[DCI forum]

Following obtaining receivership for Ymagis' French subsidiary Eclair Cinema SAS. The Employment Protection Plan for Eclair Cinema SAS is now in place.

Eclair Cinema SAS is the subsidiary that represents 5.5% of revenue, but almost all of the 2018 losses. It was placed in receivership last November. The Employment Protection Plan (PSE) for Eclair Cinema SAS, which oversees Eclair’s post-production and restoration activities in France, has been approved by DIRECCTE, the regional labour authority, and authorised by the official receiver.

The restructuring involves 38 employees, the cost of the redundancies is being financed by the AGS, the French wage guarantee scheme.

Eclair Cinema SAS will pursue its restoration activities and is working on ending the receivership through a continuation plan. All restoration projects in progress will continue to be executed in accordance with the agreements signed with the customers. Eclair has also ensured that all films in post-production with Eclair Cinema have been finalised or entrusted to other service providers, in agreement with the customers concerned.

Eclair will now focus its efforts and investments on the development of its adaptation activities (subtitling, dubbing), digital distribution, preservation and content delivery to cinemas. Actively pursuing the digitalisation of its services with its strategy involving the development and operation of cloud-based platforms.

The next press release is to be released on 15th February 2019, announcing the company's Full-year 2018 revenue. The figures, being delayed as they were initially scheduled for release on 4 February 2019.