The ready-to-wear brand Burton of London was placed into compulsory liquidation on Tuesday February 13 by the Paris commercial court, a source close to the matter revealed to Agence France-Presse (AFP). The French group, whose main shareholder is Thierry Le Guénic and which employs some 200 people, first benefited from a safeguard procedure then was placed in receivership during the summer of 2023.
The liquidation announced on Tuesday should lead to the closure of stores as well as a social plan which concerns the entire staff, even if there could be proposals to take over individual stores, a source close to the matter said to AFP at the beginning of February.
According to Anne-Marie Da Costa, CFTC union representative, Burton of London employs some 200 people and has 46 stores, which closed on Saturday. The headquarters closed on Monday, she further told AFP.
“When Thierry Le Guénic acquired the company for a symbolic 1 euro in November 2020, via his company Ulysse Capital, 658 employees worked at Burton of London for 122 stores throughout France”recalled the CFTC in a press release. “Today there is nothing left”deplores the CFTC which accuses Mr. Le Guénic: “He refused to make any contribution to society despite the aid he received [sic] of State. »
Ready-to-wear crisis
“The shareholder made decisions for the benefit of group companies and to the detriment of Burton of London”further affirmed the union, which explains “the current economic situation” of the company. “After the 228 dismissals already pronounced” during the first job protection plan, in February 2023, “200 people find themselves on the floor again”according to the CFTC.
Camaïeu, Kookaï, Naf Naf, Gap France, Don’t Call me Jennyfer, André, San Marina, Minelli, Pimkie, Comptoir des Cotonniers, Du Pareil au Same, Sergent Major, Princesse Tam Tam, Kaporal, IKKS… Ready-to-wear has been going through a violent crisis for over a year.
Some companies cut staff and close stores, like Pimkie, others are placed in receivership, like Naf Naf, and, more rarely, liquidated, like San Marina. These well-known brands in French city centers have suffered from an explosive cocktail: pandemic, inflation, rising prices of energy, raw materials, rents and wages or even competition from second-hand and “fast” goods. fashion”.