December 1, 2023

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Galeries Lafayette Franchises To Enter Safeguard Process, Not Receivership

PARIS – Contrary to an before job interview of French businessman Michel Ohayon, the 26 Galeries Lafayette franchises owned by Hermione Men and women & Makes will be positioned less than safeguard proceedings.

On Friday, the embattled businessman had instructed French regional newspaper Sud Ouest that even though the “situation is nutritious,” the Galeries Lafayette retail franchise would be positioned beneath receivership “to protect [it] from any attacks.”

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A spokesperson for the businessman instructed the AFP on Saturday that this was “an error” and that “a petition to for safeguard proceedings at the business court docket in Bordeaux” experienced been filed on Friday and that there was “no defaulting on payments.”

The ‘safeguard’ standing will permit Hermione Persons & Models to negotiate a restructuring approach less than the court’s direction.

The interview had been printed pursuing a courtroom hearing in the southern French city of Bordeaux that saw Ohayon’s retail home investment decision and development team Financière Immobilière Bordelaise go into receivership before in the week.

Financière Immobilière Bordelaise, or FIB Group, is associated in large-close motels and wine manufacturing. It is the proprietor of properties such as the Sheraton hotel at Paris’ Charles-de-Gaulle airport, the Waldorf Astoria Trianon Palace in Versailles and the Grand Hôtel de Bordeaux, operated by the IHG hospitality group.

The three keeping corporations that personal the hotel premises were being put into administration by the Bordeaux commercial courtroom for defaulting on a 201-million-euro loan from Bank of China to finance these acquisitions “from the 1st instalments of the funding plan.”

In 2018, FIB’s retail arm Hermione Persons & Brands had purchased an first 22 outlets throughout France, grouped and operated less than the Hermione Retail umbrella. Most just lately, it took around a more French a few shops and an outlet, subsequent the Galeries Lafayette Group’s decision to thrust even further into the franchise product in 2021.

This is a new blow for the embattled group and its HPB retail arm. The 2022 personal bankruptcy of high road retailer Camaïeu, ensuing in the closure of over 500 outlets throughout France and the reduction of some 2,600 jobs, had established a nation-wide furor.

In January, it placed sports activities devices retail store chain Go Activity less than receivership and there are indications that Hole France, the entity born from the 2021 invest in of Gap’s activities in France and operating its French stores under a franchise arrangement, could observe go well with in the limited term.

Mounting concerns observed employees of the 26 Galeries Lafayette impacted shops phase walkouts on Tuesday, to protest the lack of transparency on the financial scenario of Hermione Retail, in which many suppliers are said to be in “great difficulties” in accordance to AFP reports.

In reaction, Hermione Men and women & Makes had explained to the French news company that “no layoff program or keep closure is programmed at Hermione Retail,” introducing that “the corporation is balanced, supported by a advertising tactic that shown its pertinence,” and a 2022 turnover “rising 4.1 p.c and January revenue “rising 9.8 percent” versus the identical period of time very last year.

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