M&S French closures on hold

Still available in France, at least for now

Marks & Spencer (M&S) said it has slowed moves to close its 18 French stores, preferring instead to seek a buyer.

The closures, part of plans announced by M&S in March to pull out of Europe, had unleashed protests by its 1,700 French employees, as well as criticism from the Paris government.

M&S France chairman Alain Juillet said in a statement that he would "favour a sole purchaser for all of the stores, allowing a guarantee of jobs."

But the M&S name will still disappear from French streets, as a sale will probably only involve the stores, and not the brand name or merchandise.

Mr Juillet confirmed that talks with potential suitors were already underway and that the buyer's identity should be known by the end of September or early October.

Not reassured

Department store chain Galeries Lafayette and retailer Pinault Printemps Redoute are thought to be amongst the interested parties.

It is unclear whether M&S will take a similar approach with its other European ventures, which comprise 20 more outlets around the Continent, or with its US business.

The Sycopa trade union of Paris retail employees welcomed the move.

But other staff were sceptical and vowed to continue fighting to save their jobs.

"Nobody is reassured by this news" said food supervisor Jiannone Idea.

Plans change

M&S France had been looking to close its stores by the end of the year.

At the firm's annual general meeting on 11 July, chairman Luc Vandevelde reiterated his intention to quit Europe, saying M&S would finalise plans for disposing of Continental operations after completing negotiations with staff.

The chain's employees have grabbed media attention with a series of protests including marches and even an occupation of the firm's flagship outlet in Paris.

Mr Vandevelde, who reported a further sharp slump in M&S clothing sales early this month, has given himself until next May to turn around the ailing High Street giant.

The company has continued to dump UK suppliers in favour of cheaper foreign manufacturers.