Smoby boss arrested

The erstwhile CEO and grandson of the founder of the French manufacturer was arrested Tuesday in Lyon and placed in custody on the premises of the Judicial Police in Dijon, accused of misappropriation of funds.

A criminal investigation was opened against him in mid-October by the prosecutor of the Republic of Lons-le-Saunier in the Jura region alleging that he diverted funds through an extensive system of companies abroad.

"My client continues to deny these accusations", said Breuil's lawyer, Alain Ribeyre.

At a press conference in October Breuil denied the accusations, insisting that the firm was the victim of a campaign to undermine the French toy industry.