The Bordeaux Commercial Court on Wednesday examines the plan to continue the activity of Galeries Lafayette stores in the provinces, owned by businessman Michel Ohion. Another step in the downfall of his empire.
What is the future of Galeries Lafayette stores in the provinces, currently in the process of foreclosure? The Bordeaux Commercial Court on Wednesday examines the current management’s plans to continue the business. Bordeaux businessman Michel Ohion is the current owner of these 26 stores. It also bought Camaiu, Go Sport and Gap France. The brands are now liquidated and there is not much left of his empire.
The slate amounts to 153 million euros. 153 million in liabilities for 25 Galeries Lafayette stores in the regions. On 26th i.e. lane closure has been registered. The continuity plan submitted by the company, Hermione Retail, provides for a 70% procurement waiver and a ten-year schedule for the remainder.
But 850 employees, 85% women, no longer believe in Michelle Ohio’s promises. The Inter-Union Institute issued an unfavorable opinion on the plan, expecting an 11% increase in activity. How can this be possible when the stores have been losing turnover for four years? Employee representatives are suspicious and have lost all faith in their shareholders.
The precedents are not in its favour
The one who bet five years ago to turn several brands into trouble has failed miserably. Liquidation for Cameo last year, was acquired in 2020 for a symbolic euro at the Commercial Court. Judicial recovery for Go Sport, Gap France and La Grande Recre.
As a result all franchises have been taken over by competitors with job cuts. 50 of the 72 Go Sport stores will soon come under the banner of Intersport, which has 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 is related to British JD Sports.
With his experience in commerce, many look to Michelle Ohio for the job to turn around brands that were losing momentum. A total fiasco.
Pinned for poor management
The health crisis and declining purchasing power have certainly not helped the ready-to-wear sector, but Mitchell Ohio is also known for its poor management and strange accounting arrangements between some of its subsidiaries. For example, the money from Go Sport would have been used to fund the salaries of Camaiu staff. Go Sport will buy the Gap Fresh brand through parent company Hermione People & Brands for 38 million euros.
So many operations that commissioned expert firms find it extremely difficult to justify. The holding company, Financière Immobilier Bordeaux, which oversees a total of more than 150 companies, hotels, real estate, business schools, etc., is also in financial trouble. From now on Michel Ohion’s name is underlined in red in Bercy, and his empire is essentially built on debt which is under attack from all sides.
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