On the eve of the presentation of the continuation plan for 25 stores affiliated to Hermione Retail, Galeries Lafayette agreed, among other things, to write off 70% of their debt. As a result, the Bordeaux Commercial Court will finally deliver its verdict on March 20.
25 of the 26 Galeries Lafayette stores affiliated to Hermione Retail in the French provinces, which have been in safeguard proceedings since February 2023, have just escaped the worst. In this case, they will be placed under receivership.
The Bordeaux Commercial Court granted them a reprieve on Wednesday, February 21, 2024. The day before it was presented, the continuation plan by Hermione Retail, a subsidiary of Financière Immobilière Bordelaise (FIB), itself the holding company of businessman Michel Ohayon, had been accepted by its main creditor, the Galeries Lafayette group. Galeries Lafayette franchised its 26 stores to Hermione Retail in 2018 and 2021.
Galeries Lafayette waives 70% of its receivables
“Galeries Lafayette has waived 70% of its claims, agreed to pay the remaining 30% within 10 years” and “to review the commission rate in two years’ time“, Maître Stéphane Kadri, the lawyer for Hermione Retail’s central social and economic committee (CSEC), told AFP ahead of the closed-door hearing. The initial forecast of an 11% growth rate, deemed unrealistic, was also lowered to 4%.
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Read also > PROFILE : MICHEL OHAYON, GREATNESS AND DECADENCE
Featured Photo: Galeries Lafayette Agen © Galeries Lafayette
