Michel Ohayon's failed empire's recovery plan rejected; CGT union worried about jobs

"While the 26 Galeries Lafayette stores in the provinces are currently continuing their operations thanks to a safeguard plan, their future remains particularly fragile. The liquidation of FIB could lead to the sale of the buildings housing many stores, posing new threats (...) in the long term, to the 1.100 jobs concerned," warns the CGT Commerce and Services federation in a press release.

The flagship of Michel Ohayon's real estate and commercial empire since its creation in 1996, FIB was placed in receivership in January 2023, after significant financial difficulties.

The rejection of its recovery plan, handed down in December by the Bordeaux commercial court, was confirmed last week by the appeals court, as revealed by the Sud Ouest newspaper this week.

The court did not order the liquidation of FIB but referred the case to the commercial court for the development of a new plan, without giving a deadline.

According to the decision, consulted by AFP, the holding company, which also owns the Grand Hôtel de Bordeaux, the Sheraton hotel at Roissy-Charles-de-Gaulle airport and the Trianon Palace in Versailles, proposed to repay only 2% of the unsecured debts, erasing the bulk of the debts.

According to the document, FIB's declared liabilities amount to 1,7 billion euros, which its representatives dispute, citing duplicates between the holding company and its subsidiaries, inflating the calculation.

Michel Ohayon had built a real estate empire before being weakened in his commercial acquisitions in 2022, with the liquidation of Camaïeu (2.600 employees).

He then had to sell Gap France and GO Sport, which were placed in receivership.

Suspected of having diverted money from these struggling businesses to his own benefit, the Bordeaux businessman was charged in April 2025 with bankruptcy, misuse of company assets, organized fraud, breach of trust and aggravated money laundering.