The fate of Burton of London, a popular ready-to-wear brand, will be decided on February 13 by the Paris Commercial Court. According to a reliable source close to AFP, liquidation is the likely outcome for the brand, which is currently undergoing judicial reorganization. This confirms earlier reports by Capital.
Burton of London, a French retail chain, went through a safeguard procedure before entering judicial reorganization in the summer of 2023. Despite management proposing an alternative continuity plan, no comprehensive takeover offer was presented to the judges overseeing the company’s reorganization. The administrators, judicial officers, and supervising judge found the proposed plan to be insufficient. A source close to the AFP explained that, based on this assessment, the judges are likely to support a request for the liquidation of Burton of London, despite opposition from the employee committee.
If the liquidation option is chosen, it will result in store closures and a social plan affecting the approximately 250 employees. However, there may be individual store takeover offers. At the beginning of 2023, Burton of London operated 109 stores and had 440 employees. However, it closed 26 stores in February and divested others throughout the year. By November 2023, the brand only had 52 stores, with four boutiques under the multi-brand concept Sauvage Poésie. The projected revenue for 2023 was estimated at 34.3 million euros, a significant decline compared to the 50.1 million euros recorded in 2021.
The fate of Burton of London is part of a larger pattern of struggles for businessman Thierry Le Guénic. His lingerie chain Orcanta was liquidated in September 2023, and the home decor brand Habitat suffered the same fate in December. In January 2024, the lingerie brand Maison Lejaby entered judicial reorganization. Le Guénic also owns other brands such as Paule Ka and Cosmoparis.
The French ready-to-wear sector has been facing a severe crisis for several months, with well-known brands like Camaïeu, Kookaï, Naf Naf, Gap France, André, San Marina, Kaporal, Don’t Call Me Jennyfer, Du Pareil au Même, and Sergent Major experiencing difficulties. The crisis is attributed to various factors, including the ongoing pandemic, increasing costs of energy and raw materials, rising rent and salaries, as well as competition from the second-hand market and fast fashion.
In conclusion, the future of Burton of London hangs in the balance, and the decision of the Paris Commercial Court on February 13 will determine the brand’s destiny. It is yet to be seen whether liquidation will be the final outcome or if there will be opportunities for individual store takeovers. The challenges faced by Burton of London and other brands in the ready-to-wear sector highlight the difficult circumstances that the industry continues to face.
For more information, visit:
1. BBC: The challenges facing the French ready-to-wear sector
2. Reuters: French clothing chain Camaïeu files for bankruptcy protection
