The Lille commercial court has ratified the job protection plan for French fashion brand Pimkie, according to a ruling obtained by AFP on Thursday, confirming a two-year continuation plan. This decision concludes the observation period initiated in late May, when the job protection procedure for Pimkie began.

Forecasts suggest “the possibility of settling liabilities and a return to profitability from 2026,” noted the court, which set the continuation plan at two years, allowing Pimkie to avoid restructuring or judicial liquidation.

“This is a positive sign,” stated CFDT union delegate Marie-Annick Merceur, while emphasising that “2025 will be a pivotal year” for the group’s future.

While several French ready-to-wear brands (Camaïeu, DPAM, Sergent Major, Comptoir des Cotonniers, etc.) are also struggling, Pimkie has undergone two employment protection plans (PSE) since 2023, leading to the closure of around 100 stores and the elimination of nearly 500 jobs.

The restructuring initiative is led by a consortium comprising Ibisler Tekstil, Lee Cooper France, and Salih Halassi, who acquired the brand in early 2023 following the Mulliez family’s decision to divest. Meanwhile, CEO Elodie Chelle is reportedly developing a new store concept and exploring opportunities to diversify the product range.

As of the end of July 2024, Pimkie employed 1,303 people across 154 stores, according to the Lille court’s judgment. Founded in 1971 and targeting a young female demographic, Pimkie saw its sales reach €198 million in 2023, down from €216 million the previous year.

(With AFP)