French women’s fashion retailer Naf Naf, which initiated receivership proceedings in September, has unveiled its strategy, which includes closing 17 stores, putting 87 retail positions and 30 head office roles at risk, as reported by the CFDT union to AFP.
The decision was made following discussions with employee union representatives and will impact stores in various French cities, including Mulhouse, Bordeaux, Saint-Omer, Brest, Marseille, Niort, Levallois, Nancy, Paris, Nice, Aix-en-Provence, Lille, Toulouse, Tours, and Boulogne. These store closures are expected to be completed by November 10, except for the Nice store (end of January 2024) and the Boulogne store (end of March 2024).
Naf Naf’s French head office will relocate from Asnières to Bondy in mid-November, and the job protection plan will apply to head office employees who are unwilling to change their work location, according to Angélique Idali, the union representative’s secretary and a CFDT delegate. The CFDT union holds a majority presence (87%) at Naf Naf.
Idali expressed concerns about the number of head office jobs at risk, especially with Naf Naf’s e-shop still closed. She stated, «Some employees have devoted more than 25 years to the company, and this is quite a shock.» She added, «In just four months, the company has eliminated more than 150 jobs.»
Naf Naf entered receivership through the trade court of Bobigny in September, primarily due to debt accrued during the pandemic, notably unpaid rents. As is customary, the company is under monitoring for a six-month period. A hearing is scheduled for November 7, during which the court will evaluate the company’s situation, including its financial health, according to Idali.
Naf Naf, a mid-market women’s fashion brand established in 1973 by two brothers, is currently owned by the Franco-Turkish group SY International. Prior to the latest job protection plan, it employed 660 individuals in France and operated 135 stores. In 2022, Naf Naf reported revenue of €141 million and indicated growth at the end of August, as noted by an AFP spokesperson.
Naf Naf had previously undergone receivership in May 2020 and was subsequently acquired by SY International, a global company with 1,500 employees. SY International also acquired the French women’s fashion brand Sinéquanone in 2019. In June 2023, Naf Naf initiated a restructuring plan, which resulted in the elimination of 37 jobs as part of the recovery strategy.
