2024-02-02 13:31:57
By Le Figaro with AFP
Published on 02/02/2024 at 2:31 p.m.
The decision will be made by the Paris commercial court. OceanProd / stock.adobe.com
Closing the stores would result in a social plan threatening the 250 employees.
The fate of the ready-to-wear brand Burton of London, in receivership, will be decided on February 13 by the Paris commercial court, the liquidation being «probable», according to a source close to the matter, confirming information from Capital. The French chain of stores, whose main shareholder is the businessman Thierry Le Guénic, first benefited from a safeguard procedure then was placed in receivership during the summer of 2023. No takeover offer overall had not been presented to the judges responsible for the company’s legal recovery case, which had enabled management to propose an alternative continuation plan.
But it was deemed insufficient by the legal representatives and administrators as well as the supervising judge who therefore “supported a liquidation request” of Burton of London, explained a source close to the matter. He is «probable» that this option be retained by the judges, even if the works council gave a negative opinion, added this same source.
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This decision would result in the closure of stores as well as a social plan for all of the company’s staff, “around 250 employees”, further indicated the source interviewed. In this eventuality, there could be offers to take over individual stores. At the start of 2023, Burton of London had 109 stores and employed 440 people, then closed 26 points of sale in February.
The ready-to-wear sector in France has been shaken for several months by a violent crisis. Camaïeu, Kookaï, Naf Naf, Gap France, André, San Marina, Kaporal, Don’t Call Me Jennyfer, Du Pareil au Meilleur and Sergent Major… These brands well known to French consumers have suffered from cumulative factors: pandemic, increase costs of energy, raw materials, rents and salaries or even competition from second hand and «fast fashion».
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