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🇫🇷 France /Elections & Politics

French Businesses Struggle: Delays, Liquidations, and Uncertainty Plague Companies Highlighted at 'Choose France' Summits

From Le Figaro · () French

Translated from French, summarized and contextualized by DistantNews.

At a glance

News Named sources Context piece
  • Several French companies, including those highlighted at "Choose France" summits, are facing delays, liquidations, and uncertainty.
  • Notable examples include issues with the SNCF's new high-speed train, the crisis affecting fashion brands like Okaïdi and Jennyfer, and the liquidation of furniture retailer Habitat.
  • The article points to broader economic challenges impacting businesses, from AI investments to the struggles of small retailers and the automotive sector.

Despite high-profile announcements at events like the "Choose France" summits, a number of companies are struggling with significant operational and financial challenges. SoftBank's pledge of a record 75 billion euros investment in AI in France, timed with the "Choose France" summit, highlights the country's ambition to attract foreign capital. However, this optimism is tempered by the reality faced by other businesses.

We were never informed of Habitat's difficulties.

— Thousands of customersExpressing anger and frustration after Habitat's liquidation.

The new Alstom-built high-speed train for SNCF, despite official approval, will not begin passenger service in July as initially hoped but will be delayed until the fall. This points to potential logistical or technical hurdles in major infrastructure projects. In the fashion sector, a "black list" of brands like Okaïdi, Jennyfer, and IKKS reveals a deep crisis since 2020, with about twenty French apparel companies filing for bankruptcy or undergoing judicial restructuring.

I would pick up my daughter in the evening, hungry.

— ParentDescribing the situation at the International School of Nantes before its liquidation.

Consumer confidence has also been shaken. Thousands of Habitat customers will not receive their furniture after the company was liquidated, owing millions in customer deposits. This situation underscores the limited protection consumers have in cases of bankruptcy. Similarly, the International School of Nantes, a bilingual school, has been liquidated after years of internal issues, with the director alleging "sabotage."

The Mulliez are hands-on entrepreneurs.

— Barthélemy Guislain, President of the Mulliez Family AssociationExpressing confidence in the future strategy of the family's businesses.

Even established business families are not immune. The Mulliez family, owners of Auchan, Decathlon, and Leroy Merlin, are navigating challenges, though their association president expresses confidence. Meanwhile, the state is intervening to support employees of the MBF Aluminium foundry, offering retraining and business creation aid. The article also touches on the essential nature of small businesses, with one opinion piece arguing that deeming them "non-essential" during lockdowns is a grave error with future unemployment consequences. New Look France is also reportedly facing liquidation, with no buyer found for its 400 employees.

Considering small shopkeepers 'non-essential' during lockdown is a serious mistake.

— Denis Jacquet, EntrepreneurAnalyzing the economic repercussions of classifying small businesses as non-essential.
DistantNews Editorial

Originally published by Le Figaro in French. Translated, summarized, and contextualized by our editorial team with added local perspective. Read our editorial standards.

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