About twenty Galeries Lafayette stores were placed on Wednesday in safeguard proceedings by the Commercial Court of Bordeaux. These department stores are owned by the Bordeaux businessman Michel Ohayon. Employees had been concerned about the future of their stores since the liquidation of Camaïeu and the receivership of Go Sport, two brands also owned by Michel Ohayon, prompting staff representatives to exercise their right to alert.
The 25 Galeries Lafayette stores affected by the safeguard procedure are those in Agen, Amiens, Angoulême, Bayonne, Beauvais, Belfort, Besançon, Caen, Cannes, Chalon-sur-Saône, Chambéry, Dax, La Roche-sur-Yon, La Rochelle, Libourne, Lorient, Montauban, Niort, Rouen, Saintes, Tarbes, Toulon, Tours, Pau and Rosny. The outlet store in Coquelles, near Calais, is also concerned.
Observation period
The objective of a safeguard procedure is to facilitate the reorganization of a company in difficulties to maintain the activity and the jobs, at the same time that the debts are settled, as explained by the Ministry of Economy. At the end of an observation period, the court may adopt a safeguard plan if it is possible to change the company. Otherwise, the safeguard procedure may give rise to judicial administration or judicial liquidation.
Source: BFM TV
