Naf Naf officially enters receivership

Following a hearing on September 5, the Bobigny Commercial Court gave its decision on Wednesday, opening receivership proceedings against Naf Naf, the company said in a press release. Faced with “unprecedented economic difficulties,” the women’s fashion chain owned by the Franco-Turkish SY group had applied for the procedure last week, as revealed by FashionNetwork.com. A six-month observation period has been decided.

The brand, which was founded in 1973, had already gone into receivership three years ago, prompting a change of hands from the Chinese group La Chapelle to its current owner SY.

Today, the management’s intention is to remain at the helm and draw up a continuation plan “that will safeguard jobs and pay off creditors,” the company said in a press release. A search for buyers may still be launched by the court-appointed administrators in charge of the case.

Management’s recovery plan could lead to “some shop closures, around twenty in all, and a new PSE at head office, which will be moving location,” says Angélique Idali, secretary of the works council and CFDT union delegate, which has an 87% majority at Naf Naf. 

Employees are also concerned about their unpaid August salaries, and on September 5 they began receiving an advance on their September pay (amounting to 90-95% of the net amount), according to a spokesperson. August’s pay will be covered by AGS (the wage guarantee scheme) in a few days’ time, as part of the receivership procedure.

An initial restructuring took place last spring, with the loss of 27 jobs at the company’s head office. Shortly before that, at the beginning of 2023, several managers, including Managing Director Luc Mory, had left their posts.

Naf Naf has around 215 outlets. According to the company, its total sales are in the region of €165 million, with some €141 million generated on the French market in 2022, where it employs 660 people.

In a shrinking market and faced with “declining traffic”, the management of Naf Naf, led by Selçuk Yilmaz, said it was being squeezed by “a decline in sales” and “an increase in the weight of debt,” while structural costs remained high.

With AFP