An expected victory for Michelle Ohio. A big surprise was revealed at a closed-door hearing on February 21, before the judges of the Bordeaux Commercial Court, in the presence of lawyers, employees and a Bordeaux businessman. A new business continuity plan presented for 26 Galeries Lafayette stores has received group approval, according to the employees’ attorney.
A year ago, Mitchell Ohio placed stores through the company Hermione Retail, Hermione Outlet and Hermione TPR, which he owns, into the safeguard process. On February 14, negotiations with its creditor, the Galeries Lafayette group, owner of the brand, were unsuccessful. The court then adjourned the hearing till February 21.
To address the failure, Hermione Companies reviewed the terms of the business continuity plan. Managers are now counting on 4% growth this year on a turnover of 11% and plan to inject 9 million euros, including 3.5 million now in 26 stores, while maintaining thousands of jobs. However, losses for the next fiscal year are estimated at 5.7 million euros.
Employees do not trust
Commitments that Michel was able to convince Ohio’s creditor, Galeries Lafayette. As opposed to initially planning to continue, the group is now ready to write off 70% of the debts accumulated by the businessman, out of a total of 38 million euros. Real compensation was achieved due to the spread of compensation over ten years and a review of commission rates received by galleries over two years. The court’s decision was adjourned till March 20. Validation of the scheme will avoid the legal recovery process.
For employee advocate Me Stefan Kadri, the safeguard plan is pending “Unreal”. “We are asked to accept the idea that he is going to do tomorrow what he has never done in five years. The same commitments are always made: increasing turnover, renovating stores, improving working conditions and occupying unused commercial space. But no one was caught.”
He points to La Tribune.Physical commerce enthusiast
The scheme provides for the retention of about one thousand jobs in the respective stores. ” We hear them say that they have not made any layoffs. It’s normal, stores are already understaffed The lawyer declares. Employees are demanding the arrival of a new shareholder as they no longer have faith in the current management. »
And yet, the Bordeaux businessman – who refused to respond to our requests – clings to his brands and city center commerce, as always since the 1980s. After a setback with the liquidated Cameo in 2022, then Gap and Go Sport, Mitchell sold. Ohio gets some air again without cutting jobs at Galeries Lafayettes.