The commercial court of Bordeaux in France has approved a plan that will save 26 regional Galeries Lafayette stores, reports Women’s Wear Daily. The stores are owned by businessman Michel Ohayon’s Hermione People & Brands – a subsidiary of Financière Immobilière Bordelaise (FIB), a real estate and hotel conglomerate. Hermoine People & Brands purchased 22 stores from Galeries Lafayette Group in 2018 and three more in 2021.
Ohayon agreed to waive 70 percent of the 28 million euros owed to Galeries Lafayette Group with the remaining 30 percent being paid back over a period of 10 years. These franchise Galeries Lafayette stores are a separate business than the famed Paris department store and reportedly employ around 1000 workers.
Currently, Ohayon is also under investigation for embezzlement, money laundering and fraud directly related to business dealings with retail brands.
Galeries Lafayette Group operates 19 of its own franchise stores in France and is planning to open several new locations this year, including a 90,000-square-foot store in Mumbai and another in New Delhi set at 65,000 square feet.