(Filed Under wholesale Lingerie News). French lingerie brand Lejaby has been placed under judicial administration by a commercial court in Lyon — a practice similar to filing for Chapter 11 bankruptcy in the United States.
According to the French bureau of the Associated Press, Lejaby will be monitored by the court for a period of six months, during which the company must reorganize and prepare a recovery plan. Financial accounts have been temporarily frozen.
During the last fiscal year, Lejaby recorded a loss of €2.7 million (nearly $4 million U.S.), closed three production sites and laid off 30 percent of its workforce. It continues to employ approximately 450 people at a Yssingeaux, France factory as well as company headquarters in Rillieux-la-Pape, near Lyon, France.
Previously owned by Warnaco Group, Inc., Lejaby was purchased in 2008 by Austria-based Palmers Textil AG.
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