Naf Naf Enters Judicial Recovery Proceedings, Threatening Nearly 600 Jobs
The French fashion brand, acquired by Migiboy Textile in June 2024, faces severe cash flow challenges.
Naf Naf, a well-known French clothing brand known for its distinctive style, has been placed in judicial recovery proceedings, just months after its acquisition by Turkish company Migiboy Textile in June 2024. This decision was made by the Bobigny Commercial Court in Seine-Saint-Denis, further complicating the brand's already tumultuous financial situation.
This marks the third time since the onset of the COVID-19 pandemic that Naf Naf has faced such proceedings.
The current situation places approximately 600 jobs at risk.
In a statement, the CFDT union expressed its concern, stating that while the court's ruling temporarily avoids immediate liquidation, it introduces a significant period of uncertainty for employees.
Naf Naf has reported that it is currently in a state of payment cessation, struggling with cash flow issues that it is unable to overcome.
The brand's liabilities amount to €44 million, compared to a reported revenue of €47 million in 2024.
The judicial assessment highlighted potential recovery perspectives based on the debtor's declarations, financial forecasts, and available cash balance.
In June 2024, Migiboy Tekstil had committed to preserving 90% of jobs and maintaining a hundred boutiques, having offered over €1.5 million to secure the acquisition.
This move preserved 521 jobs out of 586 and sustained a number of storefronts across France.
The CFDT further expressed concerns regarding the company's severely limited financial maneuverability, noting that significant restructuring, including store closures and additional downsizing at the corporate headquarters, appears likely.
This marks the third time since the onset of the COVID-19 pandemic that Naf Naf has faced such proceedings.
The current situation places approximately 600 jobs at risk.
In a statement, the CFDT union expressed its concern, stating that while the court's ruling temporarily avoids immediate liquidation, it introduces a significant period of uncertainty for employees.
Naf Naf has reported that it is currently in a state of payment cessation, struggling with cash flow issues that it is unable to overcome.
The brand's liabilities amount to €44 million, compared to a reported revenue of €47 million in 2024.
The judicial assessment highlighted potential recovery perspectives based on the debtor's declarations, financial forecasts, and available cash balance.
In June 2024, Migiboy Tekstil had committed to preserving 90% of jobs and maintaining a hundred boutiques, having offered over €1.5 million to secure the acquisition.
This move preserved 521 jobs out of 586 and sustained a number of storefronts across France.
The CFDT further expressed concerns regarding the company's severely limited financial maneuverability, noting that significant restructuring, including store closures and additional downsizing at the corporate headquarters, appears likely.
