Economy. Ready-to-wear brand Burton of London placed in liquidation

Economy.  Ready-to-wear brand Burton of London placed in liquidation

The ready-to-wear brand Burton of London was placed in compulsory liquidation on Tuesday by the Paris commercial court, according to corroborating sources at AFP.

The French group, whose main shareholder is Thierry Le Guénic, and which employs some 200 people, initially benefited from a backup procedure then had been placed in receivership during the summer of 2023.

Closure of stores

The liquidation announced on Tuesday should lead to the closure of stores as well as a social plan for all staff, even if there could be proposals to take over individual stores, a source close to the matter indicated to the AFP in early February.

According to Anne-Marie Da Costa, CFTC union representative, Burton of London employs some 200 people and has 46 stores, which closed last Saturday. The headquarters closed on Monday, she further clarified.

“When Thierry Le Guénic acquired the company for a symbolic 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,” laments the CFTC, which accuses Mr. Le Guénic: “He refused to make any contribution to society despite the aid he received (sic) from the State.” “The shareholder made decisions for the benefit of the group companies and to the detriment of Burton of London,” the union further asserted, which explains “the current economic situation” of the company.

Violent crisis for ready-to-wear

“After the 228 layoffs 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… The loan -à-porter 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”.

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