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France : Affected by strikes and the Covid-19 crisis, Fauchon files for bankruptcy in Paris

France : Affected by strikes and the Covid-19 crisis, Fauchon files for bankruptcy in Paris

The French caterer Fauchon announced this Tuesday, to have applied to the Commercial Court of Bobigny in the Paris region “the opening of a receivership procedure”. This procedure concerns, to date, the head office of the famous caterer and its three Parisian stores located on Place de la Madeleine.

 

Following the movement of the “yellow jackets” in 2018, the French strikes against the pension reform in 2019 and the Covid-19 pandemic in 2020, the caterer finds itself asphyxiated.

 

The head office of the company founded in 1886 and its two emblematic addresses at 24 and 30 Place de la Madeleine employ 130 people.

 

“After the Parisian attacks, social movements and strikes, we were unable to cope with the administrative closure of the shops on the Place de la Madeleine. We have not obtained a state-guaranteed loan and our landlords refuse to cancel the rents,” deplored the president of Fauchon, Samy Vischel.

 

In addition, while the company is facing a financial deficit, the operating costs of its Parisian stores “have become unsustainable,” Fauchon said in a statement.

 

“This restructuring is an essential step in the reorganisation of the company and the maintenance of its vital balances”.

 

Fauchon has been making losses for several years, and only 10% of its turnover is generated in its Madeleine stores. The caterer relies mainly on royalties from the 73 franchise stores (Japan, Middle East) and the sale of products to retailers.

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In January, the Receptions subsidiary had already applied for receivership proceedings to be opened following the closure of the company’s catering business this year.

 

 

Read also > A FAUCHON CULINARY SCHOOL WILL OPEN IN ROUEN IN 2021

 

Featured photo : © Fauchon

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