Paris (AFP)

The Galeries Lafayette group has launched a social plan within its struggling brand Guérin Joaillerie, which has around 240 employees and will disappear in favor of Mauboussin, bought last summer, as part of a reorganization of its jewelry division.

"A job preservation plan is underway for Guérin," a spokesperson for Galeries Lafayette confirmed to AFP, without giving further details.

The Guérin brand, which celebrated its 50th anniversary last May, will disappear and the company's activity will cease, in favor of Mauboussin: 19 shops and "corners" would be under the Mauboussin brand, while 15 others would be doomed to close. Finally, three shops employing around thirty employees would be sold to a buyer, said Arnaud Gamblin, FO union delegate.

According to Galeries Lafayette, the PSE thus concerns "163 employees", who are offered reclassification offers, but for jobs "paid 20 to 30% less and distant: it is very shocking," said AFP. an employee wishing to remain anonymous.

"The management wants to complete the PES" which started on December 17, "in mid-March, but we must take the time to manage people and give negotiation a chance," said Gamblin.

Acquired in 2012 from its founder Didier Guérin, the company, which has become Guérin Joaillerie, is one of the two brands in the jewelry department of Galeries Lafayette, with Mauboussin, in which the group took 55% last summer - for an undisclosed amount - and which the group wishes to support the development. As for the watch industry, it includes Louis Pion ("accessible" watchmaking) and Royal Quartz (luxury).

According to the spokesperson for Galeries Lafayette, "in view of the potential of Mauboussin, which is experiencing a profitable growth trajectory, attention will be paid to the acceleration of the development of this accessible jewelry brand in the coming years".

However "Mauboussin's positioning" is "close to Guérin", she underlined.

In a letter sent in January to Guérin employees, consulted by AFP, the group's management indicates that "the new premium brand strategy implemented with Guérin Joaillerie has unfortunately not produced the expected results". "Despite all the efforts to develop the brand and turnover - moving upmarket, renegotiating leases ... - turnover has continued to decline."

Referring to "recurrent losses, with contributions up to 25 million euros in 2017, by the shareholder to make up for the deficits", the missive specifies that "more than half of the stores have a negative operating result".

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