M&S France seeks sole buyer

M&S France has enough stock to last until Christmas

Marks & Spencer said it would be talking to potential buyers of its French stores until the end of August and plans to have a shortlist of two or three firms by October.

In an interview with Le Figaro, Alain Juillet, managing director of M&S France, said the firm was determined to find a sole buyer to take on all its 18 French outlets as a going concern.

"The best solution would be for one group to commit to employing the majority of the workers, if not all of them," Mr Juillet said.

Whether M&S finds a buyer or not, the company's brand name will disappear from the French market by the end of the year.

Mr Juillet estimated that laying off all the firm's 1,700 French staff - a move for which the UK parent company has already made provisions - would cost the company at least 250m French francs (£24m; $34m).

French retailer Galeries Lafayette is believed to be among the bidders, but Mr Juillet said a number of foreign firms "saw in this operation the opportunity to get into the town centre in one go."

'Communication errors'

Mr Juillet said that half his staff - mainly those under 30 - had initially agreed to take redundancy.

But now, in view of the gloomier economic outlook, "more and more will want to stay," Mr Juillet said.

Mr Juillet lamented the "communication errors" that have surrounded M&S's plans to quit the Continental European market.

French M&S staff have protested noisily

Although M&S was reported as planning to shut all its 38 wholly-owned Continental European stores earlier this year, Mr Juillet insisted the company had always intended to look for a favourable trade sale.

He said he heard reports that his stores were to be closed on the radio - "without doubt a transcription error".

News of a swift closure provoked noisy protests from M&S workers, and disquiet in the French government.

Mr Juillet stressed, however, that M&S had not altered its initial plan to rid itself of its French stores by the end of the year.

M&S France has enough stock to trade until Christmas, but no further, he said.

In addition to its wholly-owned European stores, M&S is represented around the world by franchisees, most of which operate far smaller, boutique-style outlets.