French lingerie manufacturing brand Lejaby has been put into judicial administration by a Lyon court for a period of six months.
The move was made in attempt to give the company time to re-structure the business and prepare a recovery plan.
A deterioration in the business and resulting cash flow difficulties caused the company to apply for the opening of a judicial receivership procedure on 26 October 2011.
In this six month period, Lejaby will seek to re-organise its business, so as to ensure salary payments for all employees. Lejaby has confirmed to its staff and customers that operations will continue normally during this observation period, with customer orders and deliveries being carried out as in the past.
Lejaby chairman Raymond Mahé said: “Faced by the company’s current situation, I have decided to honour the company’s staff commitments, notably with regard to payment of salaries, and to ensure the continuity of the business in order to meet the needs of our customers”.
The judicial administration period applies only to Lejaby SAS and not to UK branch Palmers Lejaby UK Ltd, which exists as a separate legal entity.