The future of around 1,000 employees will be determined by a Bordeaux trade court’s ruling, on the continuity plan offered by businessman Michel Ohayon for the 26 Galeries Lafayette franchised locations he operates in France outside of Paris.
A year ago, a protection action was initiated for the stores, following the closure of the Camaïeu fashion chain and the financial troubles of Go Sport and Gap France, both owned by Ohayon. If the court does not approve Ohayon’s proposal for the Galeries Lafayette branches, the latter may fall into receivership. The court may reverse a decision or make a ruling at the conclusion of today’s session.
Staff representatives from the CFD, CFE-CG, CGT, FO, and CFTC unions declared their opposition to Ohayon’s idea. According to a person familiar with the situation, the retailer’s management replied on Monday morning by initiating an internal survey to allow employees to decide “individually.”
The court-appointed counsel declined to speak before the hearing, that is, before Ohayon’s Hermione Retail (Hermione) company’s creditors had made their case. Beginning with Hermione’s primary supplier, the Galeries Lafayette group, from whom Hermione, a subsidiary of Ohayon’s holding firm Financière Immobilière Bordelaise (FIB), purchased 22 shops in 2018. In 2021, Ohayon acquired four additional outlets through other firms.
“We are very worried about our jobs, and many of us are losing sleep because the situation could become catastrophic,” said CFDT delegate Muriel Scanzi. One out of every four Hermione employees is above the age of 55, with women accounting for 85 per cent of the workforce. “We are dependent on the position that will be adopted by the Galeries Lafayette group,” stated Stéphane Kadri, the lawyer representing Hermione’s staff committee.
The committee also expressed concerns about the management fees imposed by Hermione People and Brands, the FIB company that controls the stores, as well as the rentals collected by other companies that hold the retail spaces. Rents have grown by 40 per cent since 2018, and the continuity plan anticipates them to decline, although not much, according to a committee-appointed expert.
