Safeguard Procedure Secures Future of Pimkie Fashion Brand Amid Financial and Operational Challenges

Pimkie, a popular ready-to-wear brand, has been placed under safeguard procedure by the Lille commercial court due to financial and operational challenges. Two administrators have been appointed to oversee the process, which aims to secure the company’s future.

The decision has come as a relief for Frédérique Dupont, the CFE-CGC secretary of the CSE of Pimkie, who had expressed concerns about the lack of investments and money inflow since the company was taken over a year and a half ago.

Marie-Annick Merceur, a CFDT delegate, also raised concerns about the faulty computer system and lack of action taken by the buyer to address these issues. However, she noted that there is more trust in this new management approach as opposed to the current management.

Formerly owned by the Mulliez family, Pimkie was acquired by a consortium in February 2023 and has since undergone two employment protection plans resulting in store closures and job cuts. This period of transition is expected to conclude with around 200 stores and 850 to 900 employees remaining at the end of the year. Negotiations under the safeguard procedure are crucial to addressing issues such as store leases, logistics contracts, and outdated IT systems. The management of the company is committed to ensuring stability but uncertainties remain about future collaborations with suppliers.