French fashion chain Naf Naf has asked for protection from creditors. The brand joins the long list of French fashion retailers on (or over) the brink of collapse.
Turnover falls
The fashion label stopped paying its bills at the end of August and has applied to the commercial court in Bobigny (near Paris) to be placed in receivership. A hearing will take place on 5 September: the owners hope it will allow them to submit a recovery plan and look for buyers. The unions will be present at the court, as the wages of 800 workers are reportedly still unpaid.
The court application should allow Naf Naf to take all necessary measures to ensure its survival, CEO Selçuk Yilmaz told FashionNetwork. He says a shrinking market with “declining traffic” is the reason for “deteriorating sales” and “increasing weight of debts”.
In June, the fashion company already carried out a reorganisation at its headquarters, resulting in the loss of 27 jobs. Several managers also left in the spring, including General Manager Luc Mory. Among other things, Naf Naf is said to be struggling with rent arrears, dating back to the pandemic and its lockdowns.
French and doomed
This is not the first time Naf Naf has been in trouble: back in 2020, the chain went into receivership, after which it was taken over by one of its suppliers, the French-Turkish SY Group. At the time, it made major cuts to its staff and shop base, but apparently that was not enough for new prosperity.
Naf Naf is far from alone: dozens of French fashion retailers are on the verge of collapse or have already disappeared recently. They can no longer compete with large international players, who are often highly digitised and cheaper.
