Naf Naf: Three takeover bids on the table, but the situation remains unclear

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Naf Naf: Three takeover bids on the table:  Receivership proceedings for the famous women’s ready-to-wear brand Naf Naf began in September 2023. Due to its severe financial woes, three takeover attempts targeting the brand’s assets have been made in the past several months. While management has characterized these bids as “encouraging,” there are still some doubts, especially among the participating unions.

 Current Naf Naf owner SY International, a Franco-Turkish corporation, has admitted that two proposals are “very partial.” A third bid, on the other hand, is all-inclusive and demonstrates seriousness in acquiring the business. This top offer is from the Canpolat family’s Turkish fabric producer, Migiboy Tekstil. About seven hundred and fifty individuals work for Migiboy Tekstil across three factories.

 The Social and Economic Committee (CSE) has reviewed the terms of these offers, and they will likely be submitted to the clerk’s office shortly. So far, we have yet to determine how many stores and how many personnel are involved in the takeover.

 The absence of specifics has been a point of contention for union reps. As the CFDT union has pointed out, there is currently no indication of how many stores or employees will be included in the takeover proposal. Migiboy Tekstil must submit a comprehensive proposal by May 23.

 The Sud trade union has met the cooperation offers skeptically, describing them as “very vague” and subject to multiple conditions. The union is concerned that this unpredictability could force numerous outlets to close their doors, putting off an eventual termination. May 28 is the day the offers will be examined, and the union is encouraging employees to gather outside the Bobigny Commercial Court.

 Chloé Distribution is keen on purchasing two stores, while GD Distribution (Gérard Darel) has offered to acquire one. Naf or investors interested in buying a share in the company were sought after in an April call for bids to close on May 13.

 The Sud union has verified that Naf Naf’s management has decided against pursuing an internal recovery plan, which was previously being discussed.

 Unpaid rent during the COVID-19 pandemic has added insult to injury for Naf Naf, who has already been struggling financially. As a result of these difficulties, the brand was placed in receivership in September. Naf Naf, established in 1973 by the brothers Pariente, now employs 676 individuals across France and runs 111 locations and 59 linked stores.

 Money problems have long plagued the brand. In May 2020, Naf Naf was also placed in receivership, which meant that the French-Turkish group SY International took over from the Chinese group La Chapelle.

 While it reviews takeover proposals and works through receivership, Naf Naf’s future is still being determined. Migiboy Tekstil’s interest is encouraging, but the brand’s future must be clouded by uncertainty due to a lack of concrete plans and union worries. What happens next for this legendary French store will depend on the outcome of the upcoming court hearing on May 28.

Ethan Sullivan

Ethan's penchant for the pulse of the fashion world extends to covering lifestyle topics, offering readers a seamless blend of the latest style updates and lifestyle trends.

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