Naf Naf Initiates Receivership Amidst Unprecedented Economic Challenges
Following a September 5th hearing, the Bobigny Commercial Court has officially launched receivership proceedings against Naf Naf, as confirmed by the company in a press release. Naf Naf, a women’s fashion chain under the ownership of the Franco-Turkish SY group, sought this procedure in response to what they describe as «unprecedented economic difficulties,» a development first reported by FashionNetwork.com. The court has established a six-month observation period.
Having been founded in 1973, the Naf Naf brand previously underwent receivership three years ago, leading to a change in ownership from the Chinese group La Chapelle to its current owner, SY.
The current management’s primary objective is to maintain control and craft a continuity plan that prioritizes job retention and the settlement of outstanding debts, as emphasized in the company’s press release. The court-appointed administrators overseeing the case may also initiate a search for potential buyers.
The recovery plan devised by the management may result in «the closure of several stores, totaling approximately twenty, and a relocation of the head office,» according to Angélique Idali, the secretary of the works council and CFDT union delegate, which holds an 87% majority at Naf Naf.
Employees have expressed concerns regarding unpaid August salaries, and as of September 5th, they have begun receiving an advance equivalent to 90-95% of their net September pay, as reported by a spokesperson. The wage guarantee scheme (AGS) will cover the outstanding August salaries in the coming days as part of the receivership procedure.
In addition, an initial restructuring occurred last spring, resulting in the loss of 27 positions at the company’s head office. In early 2023, several executives, including Managing Director Luc Mory, resigned from their roles.
Naf Naf operates approximately 215 outlets and reported total sales of around €165 million. In 2022, it generated approximately €141 million in sales within the French market, where it employs 660 individuals.
In a market grappling with contraction and decreased foot traffic, Naf Naf’s management, led by Selçuk Yilmaz, cites «declining sales» and «escalating debt burdens» as contributing factors, while structural costs remain elevated.
