Galeries Lafayette: Future of Michel Ohayon's stores to be reviewed on February 14

news January 2024 Fashion Network

What: The Commercial Court of Bordeaux is set to review the continuity plan proposed by businessman Michel Ohayon for about 20 Galeries Lafayette stores he owns in French provinces.

Why it is important: This hearing is crucial for the future of these Galeries Lafayette stores and their employees. The decision will impact the viability of the stores, the livelihood of the staff, and the financial stability of Ohayon's business ventures. It also reflects broader challenges in the retail sector, particularly for traditional department stores adapting to changing market conditions.

The plan, submitted by Hermione Retail, aims to address the challenges faced by these stores, which have been under safeguard proceedings since last February, employing around 1000 staff. The Galeries Lafayette group, as the main creditor and supplier, plays a crucial role in the decision-making process. The continuity plan includes selling the Pau store and forgiving 70% of the debts, but employees and a judicial administrator have expressed skepticism about its feasibility. Additionally, the court will review the situation of Financière immobilière bordelaise (FIB), Ohayon's main holding company, which has faced financial difficulties.

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