Naf Naf, the women’s fashion chain owned by the Franco-Turkish SY group, has officially entered receivership, as confirmed by the Bobigny Commercial Court on September 5th. This decision comes after Naf Naf’s request for receivership due to its ongoing economic troubles. It is worth mentioning that this is not the first time Naf Naf has endured financial difficulties, as it previously went through receivership three years ago before being acquired by SY.

The court has granted a six-month observation period during which Naf Naf’s management will work on a continuation plan that aims to protect jobs and settle outstanding debts with creditors. However, administrators appointed by the court may also explore potential buyers for the company.

As part of the recovery plan, Naf Naf is expected to close some stores and relocate its headquarters. These proposed changes have led to concerns among employees, particularly regarding their unpaid August salaries. To address this issue, employees have started receiving an advance on their September pay, and their August salaries will be covered by the wage guarantee scheme within the next few days.

Currently, Naf Naf operates approximately 215 stores and reported total sales of about €165 million in 2022, with €141 million generated within the French market alone. The company employs 660 individuals in France. However, declining sales, mounting debt, and high structural costs have created immense pressure on Naf Naf’s management.

This recent development for Naf Naf sheds light on the challenges faced by fashion retailers in an increasingly shrinking market. Naf Naf will need to navigate these difficulties diligently to find a viable path forward in order to secure its long-term survival.

Useful links:
Link 1: Strategies for Rebuilding Distressed Fashion Brands
Link 2: How Fashion Retailers Can Adapt to Changing Market Dynamics