The Conforama group, owned by the South African group Steinhoff, confirmed on Tuesday the launch of a "deep and necessary transformation" plan, which "could result in a maximum of 1,900 job cuts" in France.
The furniture distributor also confirms that this "project to change the organization of its activities in France", which responds to the "need for Conforama to reduce its losses and return to equilibrium", will involve the closure of 32 Conforama stores and 10 Maison Dépôt stores, according to its press release.
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A central works council (CCE) scheduled for Tuesday morning, on the occasion of which this restructuring plan was to be detailed, could not be held, for lack of the presence of the participants", indicated the entourage of the management. “The CCE was moved to Torcy to a hotel where it could not stay under normal conditions; all of the elected officials therefore refused to participate," said Jacques Mossé-Biaggini, FO delegate.
“The timetable and social arrangements for this project will be discussed with staff representatives as part of an information-consultation procedure which will begin on July 11,” says the management of the brand. She cites several reasons for the implementation of this restructuring project.
First of all, "since 2013, Conforama in France has accumulated losses amounting to nearly 500 million euros". Then, the brand had to deal with "profound changes in the distribution sector and more particularly that of specialized distribution", to which are added exacerbated competition and rapidly changing consumption patterns.
"In this context, our brand has not adapted sufficiently and is suffering a sharp drop in the profitability of its network of stores", notes the group. As a result, Conforama "has recorded a collapse in its operating income (the retail benchmark index, editor's note) in recent years," said the press release. Created in 1967, Conforama, whose slogan "the country where life is cheaper" was a landmark, was bought in 2011 by Steinhoff, mired in a vast financial scandal for almost two years.
