Coronavirus: Fauchon to go into receivership

Published by Manon C., Laurent P. · Photos by My B. · Published on 3 July 2020 at 11h15 · Updated on 3 July 2020 at 11h38
Famous place de la Madeleine caterer, Fauchon filed for bankruptcy in the Bobigny commercial court and is now going into receivership since July 1, 2020. Debts are estimated to 2.3 million euros.

These past months have not been easy for Fauchon – the famous place de la Madeleine caterer. Yellow jackets movement, transportation strike, and of course, the coronavirus crisis and lockdown have not been easy on them.

A steep check for the caterer that has just filed for bankruptcy in the Bobigny commercial court, and has been gone into receivership since July 1. Are affected by this process the home office, the production laboratory, as well as the two stores in Paris, a total of 130 people, "the loss of turnover these past three months is estimated to two millions euros, naming 89%" the court explains.

A not surprising measures since Fauchon stores have been losing momentum for years. The two stores on the Place de la Madeleine only made 10% of the group’s turnover. The company's "liabilities" (that is to say debts) are estimated to 2.3 million euros. A reimbursement that is likely to be difficult since according to our peers from the AFP who browsed the case, the company only has 600,000 euros. But everything is not lost for Fauchon since according to our peers from Les Echos, "the stakeholder gave 2.5 millions euros 'to finance the beginning of the observation period'".

For all that, hotel Fauchon, opened in 2018 at the Place de la Madeleine, is not affected by the receivership. The restaurant of the hotel is open and so is its terrace, yet bedrooms remain – for now – closed.

After the Paris terror attacks, social movements and strikes, we have not been able to face the administrative closure of our stores at the Place de la Madeleine. We have not been granted the State guarantee-supported loan and our lessors refuse to cancel rentsFauchon president Samy Vischel explains.

From now on, the group intends to rely on its many franchises across the world, and the sale of products to resellers.

Practical information

Location

30, Place de la Madeleine
75008 Paris 8

Official website
www.fauchon.com

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