France’s mixed-fashion chain, Burton of London, has officially entered receivership as confirmed by its director, Thierry le Guénic. The Paris Commercial Court made the decision on June 12, following the company’s previous placement under safeguard procedure in October 2022. As a result, the company has significantly scaled back its operations in the first half of 2023, resulting in the closure of 26 of its 110 outlets and the loss of nearly 120 jobs.

To mitigate the impact on employees, a job protection plan has been implemented, covering 220 positions. In addition, Burton of London plans to sell around thirty shops within the next six months. Unfortunately, around 20 to 25 shops have already been permanently closed in mid-June, reducing the store count to approximately 50, which is only half of its original network.

This development comes after businessman Thierry Le Guénic acquired Burton of London for a symbolic price of one euro from the Omnium group in late 2020. The company’s decision to apply for receivership is attributed to difficulties in fulfilling compensation obligations for employees who were made redundant in March. Through the receivership procedure, the responsibility for these payments may be transferred to AGS insurance, including the payment of salaries.

Despite the challenges, the CEO is determined to revive the brand, particularly focusing on the men’s range. To breathe new life into Burton of London, the Sauvage Poésie multi-brand concept will be introduced, and retail solutions will be offered to third-party companies. However, the CEO has not provided any comments regarding the current situation.

Useful Links:
1. Burton of London Official Website
2. Article on Burton of London’s Receivership (Les Echos)