Naf Naf Placed Under Judicial Reorganization: 600 Jobs at Risk Amid Hopes for a Turnaround

For the third time in five years, the French women’s fashion brand Naf Naf is facing financial turmoil. On Friday, May 30, the Commercial Court of Bobigny placed the company under judicial reorganization due to severe cash flow difficulties. Nearly 600 employees are affected, as uncertainty looms over the company’s future.

Heavy Debt, But a Glimmer of Hope

According to the court’s ruling, Naf Naf is currently unable to meet its outstanding liabilities—amounting to €44 million—with its available assets. Despite generating €47 million in revenue in 2024, the company has failed to reverse its declining financial trajectory. However, the court acknowledged “prospects for recovery” based on a forward-looking business plan and remaining cash reserves.

Naf Naf will now enter a six-month observation period, during which its situation will be closely monitored. A follow-up hearing is scheduled for July 23 to reassess the viability of its proposed recovery plan.

A Risky Bet by the Turkish Owner

In June 2024, Turkish textile group Migiboy Tekstil acquired Naf Naf in a bid to salvage the brand. The company committed to preserving 90% of the workforce—521 out of 586 jobs—and maintaining around a hundred retail stores, injecting over €1.5 million into the takeover. Migiboy also took over the brand’s operations in Spain, Italy, and Belgium.

One year later, the outlook remains uncertain. “Management and shareholders will now need to prove that Naf Naf can at least operate in the short term,” warned the CFDT trade union. This includes restocking stores, restructuring logistics, and sustaining operations under tight financial constraints.

An Iconic Brand at a Crossroads

The company’s leadership insists that operations can continue, citing an inventory of 800,000 items and monthly sales of 140,000 pieces. These figures could support short-term activity. Nevertheless, the unions remain cautious. The CFDT anticipates a “drastic reorganization,” likely involving more store closures and downsizing at the headquarters.

Should the recovery plan fail, the worst-case scenario could unfold: “a liquidation with stores, inventory, and the brand sold to the highest bidder,” the union warns—an outcome that would carry a heavy social cost.