Another blow to the French ready-to-wear sector: the women's brand Naf Naf was placed in receivership this Friday by the Bobigny Commercial Court (Seine-Saint-Denis). Facing serious cash flow difficulties, the iconic 1980s brand is now trying to avoid liquidation and save nearly 600 jobs.
According to the court's decision, the company is "unable to meet its current liabilities with its available assets," which justified the placement in receivership. In 2024, Naf Naf's turnover reached €47 million, but its liabilities amounted to €44 million, a worrying situation of near parity.
The receivership, requested by the company itself on May 21, should allow management to present a continuation plan within six months. An observation period has been opened until a next hearing scheduled for July 23, 2025.
588 jobs threatened in France
The fate of the 588 employees currently employed, and 650 over the past six months, now depends on the success of this procedure. Present in many French cities through its own boutiques and department store corners, Naf Naf sees its future uncertain, like other struggling French brands, such as Camaïeu and Kookaï, which have also recently faced similar procedures.
Turkish leadership at the helm
Since its takeover in 2020 by the Turkish group SY International, Naf Naf has never truly managed to regain its financial stability. The group acquired the brand after initially going into receivership in 2020, following the Covid-19 crisis, which severely disrupted physical retail.
In a statement sent to the press, the Turkish management assured that it wanted to "continue to make the brand exist and present a recovery plan" , insisting on the "heritage and emotional value" of Naf Naf on the French market.
A sector in crisis
Naf Naf is not an isolated case. The clothing industry has been undergoing a structural crisis for several years, exacerbated by the pandemic, inflation, rising commercial rents, and fierce competition from e-commerce giants like Zara, H&M, and Shein.
According to the latest figures from the French Fashion Institute, nearly 250 ready-to-wear brands have closed in France since 2020. The sector saw its turnover drop by 15% between 2019 and 2024, and bankruptcies are on the rise.
An iconic brand under threat
Founded in 1973, Naf Naf established itself in the 1980s with a youthful, colorful, and accessible positioning, marked by the famous advertising slogan "The Big Bad Look." It had managed to seduce generations of young women, before losing ground to new trends in fast fashion and online commerce.
The bankruptcy proceedings suggest a final rescue attempt, provided that management can propose a solid plan to its creditors and attract new financial or industrial partners.
