The encyclopedia · Finance & Accounting · Financial decision · 2024
Maison Lejaby, the emblematic French lingerie maker, is placed in court administration
Lingerie icon Maison Lejaby, founded in 1930, is placed under court administration in Jan 2024, crushed by Covid-era debt and a costly upmarket relaunch
Maison Lejaby · 2024-01-03
What happened
Maison Lejaby is a French lingerie house founded in 1930, known over the decades for its made-in-France craftsmanship and for the lymphoused and layette lines that made it an emblem of the country's underwear industry. By the 2020s it had been through a string of ownership changes and a repositioning toward a more upmarket, higher-priced image.
The company was placed in redressement judiciaire by the tribunal de commerce de Lyon in early January 2024, with 55 employees on the line. The pressure came from operating debt accumulated during the Covid period combined with the cost of the upmarket repositioning, which did not generate enough sales to offset the spending.
In May 2024 the court approved a takeover by a Franco-Indonesian consortium that kept roughly half of the jobs. The brand thus survived under new ownership, but the historic made-in-France structure was scaled down dramatically.
Why it happened
- Operating debt built up through the Covid years left the company unable to pay its bills once demand did not recover fast enough
- The upmarket repositioning raised costs and prices without delivering the volume needed to cover them
The lesson
A heritage brand that spends its way upmarket before the new image pays off is borrowing from tomorrow. When the relaunch runs on operating debt, the downturn goes straight to court.
Aftermath
The tribunal de commerce de Lyon opened redressement judiciaire in early January 2024. In May 2024 a Franco-Indonesian consortium took the company over, preserving roughly half of the 55 jobs. The brand continued under new ownership at a reduced scale.
Sources
- Lyon Mag — Maison Lejaby placée en redressement judiciaire par le tribunal de commerce de Lyon
- L'Union — L'enseigne de lingerie Maison Lejaby en redressement judiciaire
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