The Bordeaux Commercial Court has just approved the recovery plan for the 26 Galeries Lafayette stores managed by Michel Ohayon’s group, a crucial decision for the network of some 1,000 employees across France. The plan includes significant investment and financial concessions. Despite this breakthrough, uncertainties persist as to the long-term future of these outlets, not least because of the legal situation of the owner, Michel Ohayon.
The network of 26 Galeries Lafayette stores, representing some 1,000 jobs across France, affiliated to Hermione Retail, a subsidiary of businessman Michel Ohayon’s group, has received a breath of hope with the validation of its recovery plan by the courts. This decision, announced after several postponed hearings, marks a crucial step.
The continuation plan, presented at the beginning of the year, has been marginally adjusted. Initially scheduled to be examined on January 10 and then February 14 by the Bordeaux Commercial Court, this plan provides for an investment of 9.5 million euros, a third of which will be released in the current financial year.
The plan was validated by the Bordeaux Commercial Court, on condition that Financière Immobilière Bordelaise (FIB), Michel Ohayon’s holding company, adds at least 7 million euros to the deal. The court-appointed receivers have issued a “very reserved” favorable opinion. The Galeries Lafayette group stressed that its favorable vote was not a blank check. “We wanted to give our products a chance in an environment of confidence and vigilance.”
Despite the prospect of 4% growth, Hermione Retail is planning to cut jobs at head office. The most significant measure concerns the waiver by the Galeries Lafayette group of 70% of its receivables, i.e. around 50 million euros, with the remainder to be spread over a ten-year period.
Continuing concerns
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Featured photo : © SIPA
