The decision was expected. The Bordeaux court gave the green light this Thursday to the rescue plan for the 26 Galeries Lafayette stores owned by Bordeaux businessman, Michel Ohayon, located in provincial towns such as Amiens, Chalon-sur-Saône, La Roche -sur-Yon, Libourne and Niort. This decision, which is not a surprise for the players involved in this matter, allows these department stores to exit the safeguard procedure decided in February 2023. These businesses therefore remain in the hands of Michel Ohayon, who took them over in Galeries Lafayette group in 2018 and 2021, and will continue to tour.
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However, the affair got off to a bad start at the start of the year. But, last February, the Galeries Lafayette group, the main creditor through the royalties it receives and in its capacity as supplier, finally decided to accept the rescue plan of Michel Ohayon, the Bordeaux businessman in the tormented. “Galeries Lafayette has given a favorable opinion to this plan in particular with regard to the latest commitments which have been made by Michel Ohayon to give impetus to the operation of these stores”, declares the group, being well aware that a procedure of recovery or even liquidation would damage its image. “Compliance with the commitments made by Michel Ohayon before the courts is essential to ensure the sustainability of the activity,” continues the group.
The employees (nearly a thousand) are certainly relieved, as are the local elected officials who were worried about the future of their city center if the judges refused. These department stores are essential commercial locomotives in the city centers of these small and medium-sized cities.
But concerns remain great, with some having strong doubts about the businessman’s commitments. Since recovering these stores, Michel Ohayon has not made the significant investments necessary to relaunch them, several observers insist. These department stores also face competition from shopping centers and online commerce. And their format – oversized – is increasingly questioned in these small towns.
