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City shop bankruptcies explained
Economics

City shop bankruptcies explained

13.09.2013 From our online archive
The bankruptcies of nearly 20 shops in Luxembourg City rocked the capital last week, but a complex network of companies and holdings is only beginning to be uncovered.

(CS) The bankruptcies of nearly 20 shops in Luxembourg City rocked the capital last week, but a complex network of companies and holdings is only beginning to be uncovered.

Neither the administrator, labour unions or employees of the shops were able to determine immediately how many stores were affected by the bankruptcies announced last week.

The reason: Entrepreneur duo Pascal Einhorn and Frédéric Castera founded more than a dozen companies over the years under such names as Geschwester sàrl, Goldesch sàrl, Oro sàrl, Pikbaam sàrl or Kannerspill sàrl, each managing one shop.

Between September 5 and 11, some 19 companies owned by Einhorn and Castera were declared bankrupt by a Luxembourg court.

Among them was also FCPE sàrl, named after Einhorn and Castera, which managed several stores, including Loft and Butterfly.

The whole complex was brought down when their holding company, or “SOPARFI”, created at the end of 2008, folded. The offices of the holding TLVPAP SA in Merl have since been vacated.

So far, the following stores have been identified as being affected by the bankruptcy:

  • Comptoir des Cotonniers: 10, avenue de la Porte-Neuve
  • Paul Smith: Rue Philippe II
  • PS by Loft: Rue Philippe II
  • Kenzo: 7, rue Philippe II
  • Vicomte A.: 8, rue Philippe II
  • Gucci: 21, rue Philippe II
  • Mellow Yellow: 29, rue Philippe II
  • Sonia by Sonia Rykiel: 33, Philippe II
  • Butterfly: 30, Grand Rue
  • Geox: 50, Grand Rue
  • Loft: 54, Grand Rue
  • Gérard Darel: 59, Grand Rue
  • Marc by Marc Jacobs: 34, rue Notre-Dame
  • Pablo de Gérard Darel: 3-5, du Fossé
  • Sandro: 3-5, rue du Fossé
  • Gérard Darel: Auchan Kirchberg
  • Comptoir des Cotonniers: Auchan Kirchberg
  • Loft Outlet Men: 11, rue de l'Alzette - Esch/Alzette
  • Loft Outlet Girl: 11, rue de l'Alzette – Esch/Alzette

It has also been learned that Castera and Einhorn failed to pay social contributions worth several hundreds of thousands of euros for their employees, as well as owing their staff wages and benefit payments.

Reporting by Maurice Fick