It’s nothing. The Galeries Lafayette group does not support the safeguard plan presented by Hermione Retail to the Bordeaux commercial court, Wednesday February 14, to relaunch its department stores operated under license in 25 provincial towns, according to our information.
In the eyes of Nicolas Houzé, general manager of the department store group, the plan presented by Michel Ohayon is not realistic given the economic situation and is not financially viable.
Since then, “Mr. Ohayon’s company loses its franchisor”decodes an advisor to the company’s employees, emphasizing how much it will then be “complicated for the company, without this brand, to continue to operate” and to obtain goods. Especially since Galeries Lafayette, which sold 21 department stores in 2018, then four others in 2021, to Mr. Ohayon, are among the first creditors of his company, Hermione Retail, placed in safeguard procedure in February 2023.
A “lead” continuation plan
The amount of Galeries Lafayette’s debt would approach a third of the more than 150 million euros of debt accumulated over six years. The lack of support from this creditor for the plan to erase 70% of the debt and spread the remaining 30% over ten years “lead” the continuation plan, notes this expert.
Already, at the beginning of February, the social and economic committee of Hermione Retail, which represents 811 of the 1,100 employees employed by its 25 department stores, had expressed a negative opinion regarding the continuation plan revealed by the Bordeaux businessman. This decision risks “lead the judges to reject the plan”analyzes this expert, a few hours before the opening of the hearing at the Bordeaux commercial court which will be closely followed by the municipalities concerned.