2024-02-14 05:00:33
The Bordeaux commercial court examines on Wednesday the plan for the continuation of activity of the Galeries Lafayette stores in the provinces, owned by businessman Michel Ohayon. One more step in the decline of his empire.
What future for Galeries Lafayette stores in the provinces, currently in the safeguard procedure? The Bordeaux commercial court examines on Wednesday the business continuation plan of the existing management. Bordeaux businessman Michel Ohayon is the current owner of these 26 stores. He was also the one who bought Camaïeu, Go Sport and Gap France. Brands now liquidated and now there is not much left of his empire.
The slate amounts to 153 million euros. 153 million in liabilities for the 25 Galeries Lafayette stores in the regions. The closure of the 26th, that of Pau, has already been recorded. The continuity plan submitted by the company Hermione Retail provides for an abandonment of 70% of the receivables, and a ten-year schedule for the remainder.
But the 850 employees, 85% women, no longer believe in Michel Ohayon’s promises. The inter-union organization issued an unfavorable opinion on the plan, which expects an 11% growth in activity. How might this be possible when stores have been losing turnover for four years? Employee representatives are skeptical and have lost all confidence in their shareholder.
Precedents are not in his favor
The one who made the bet five years ago to turn around many brands in difficulty has completely failed. Liquidation last year for Camaïeu, acquired for a symbolic euro at the commercial court in 2020. Judicial recovery for Go Sport, Gap France and la Grande Récré.
Franchises which have all been taken over by competitors with job cuts as a result. 50 of the 72 Go Sport stores will soon come under the banner of Intersport, which bought them and is counting on an investment of 60 million euros over five years to renovate them. Gap France has seen its stores fall into the hands of the company Spodis, which belongs to the British JD Sports.
With his experience in commerce, many saw in Michel Ohayon the man for the job to turn around brands that were losing momentum. Total fiasco.
Pinned for poor management
The health crisis and the drop in purchasing power have certainly not helped the ready-to-wear sector, but Michel Ohayon is also being singled out for his poor management and strange accounting arrangements between several of his subsidiaries. Money from Go Sport would have been used to finance the salaries of Camaïeu staff, for example. Go Sport once more which would have bought the Gap Frace brand for 38 million euros via the parent company Hermione People and Brands.
So many operations that the commissioned expert firms have great difficulty justifying. Even the holding company, Financière Immobilier Bordeaux, which oversees a total of more than 150 companies, hotels, real estate, business schools, etc., is in financial difficulty. From now on the name of Michel Ohayon is underlined in red in Bercy, and his empire essentially built on debt is under attack from all sides.
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