The leading children's fashion retailer is facing a severe crisis. On Tuesday, February 3, 2026, the group IDKIDS has filed for judicial reorganization for most of its French brands before the Lille Métropole Commercial Court. The hearing is scheduled for 4:00 p.m. Based in Roubaix in the Nord region, the company, which specializes in children's clothing, risks becoming the latest addition to the long list of struggling French textile brands—following names such as IKKS, Camaïeu, Kookaï, and Pimkie.
This protection request pertains to the brands Obaïbi (clothing for ages 0-3), Okaïdi (ages 3-14), Oxybul (educational toys), and the logistics platform IDLOG. However, the premium brand Jacadi Paris, its international subsidiaries, and all franchisees of the IDKIDS group are not involved in this process. IDKIDS employs 2,000 people in France and has a total of 6,000 employees worldwide, with a combined annual turnover of 800 million euros. The Okaïdi brand alone generates 600 million euros in global revenue, including 300 million euros in France.
The group's management explains this decision as a move to give the company more time and financial flexibility, essential for accelerating its transformation. In their statement, IDKIDS cites a "challenging economic environment" and highlights the fierce competition from "generalist low-cost brands, secondhand markets, and aggressive ultra fast-fashion players." The group specifically mentions experiencing a "hourglass effect": while the premium segment remains resilient at the top, and low-cost and ultra fast-fashion brands thrive at the bottom, mid-range brands like Okaïdi are increasingly squeezed. "Okaïdi needs to adapt its operational model and reaffirm its unique identity to stay competitive," the management emphasizes.
The French clothing industry has been struggling for several years. Following the rise of online shopping, the Covid-19 pandemic, and inflation, the sector now faces new challenges from second-hand fashion and ultra-trendy quick-turnover styles, exemplified by Asian platforms such as Shein and Temu. According to the French Institute of Fashion (IFM), the apparel and textiles sector experienced a 1.3% decline in 2025 and an overall drop of 8.5% since 2019, with mid-range brands bearing the brunt of this downturn.
For Farida Khelifi, union representative at CGT at IDKIDS, the company’s placement under judicial administration had been anticipated "for years," citing a "nine-figure debt" driven by "strategic mistakes" within a declining sector. She also criticizes the brand’s collections for being "less trendy," with styles considered "too carnival-like" and "expensive for the middle class." The shrinking purchasing power of the French and fierce competition from online platforms are significantly impacting sales at brick-and-mortar stores.
The announcement has sparked concern among unions. Farida Khelifi warns of potential "pay impacts" due to "store closures," though the full extent remains unclear. She believes this process will "inevitably lead to store closures" and "job cuts." It’s worth noting that the company had already announced a "simplification strategy" in March 2024, which resulted in the loss of 250 jobs across its stores and 50 at headquarters, according to a company spokesperson.
In stores, customers often show their loyalty to the brand, frequently praising its good value for money. However, competing with the cheaper options online proves challenging: "Everyone is mindful of their budget."
Unlike its struggling brands, IDKIDS is proud of the "growth trajectory" of Jacadi Paris, its premium label, which achieved in 2025 its "best performance in history" with a 35% increase in profitability. This contrasting trajectory exemplifies the "hourglass effect" mentioned by management: the high-end sector remains resilient, while the mid-range segment faces challenges. Jacadi, positioned within the luxury market, is thriving thanks to a clientele less affected by fluctuations in purchasing power.
This potential new casualty would join a long list of French ready-to-wear brands that have faced serious difficulties in recent years. Some, like Kaporal and Jennyfer, have gone into liquidation, while others such as Camaïeu, Kookaï, Gap France, Pimkie, or Comptoir des Cotonniers have resorted to multiple restructuring plans.
The IDKIDS group, present in 70 countries, must convince the Lille Métropole commercial court of the viability of its recovery plan during today’s hearing at 4:00 PM. The outcome will determine the fate of thousands of jobs and hundreds of stores. The coming weeks will be crucial in deciding which shops can stay open and how many jobs can be saved. To better understand the implications of judicial reorganization, visit the official public service website or follow the news on struggling businesses in the region on the commercial court’s site.
