What: Retail magnate Michel Ohayon has been indicted for misuse of corporate assets, marking the latest development in the dismantling of his commercial ventures.

Why it is important: The indictment represents a cautionary tale about the challenges of managing diverse retail portfolios, especially as traditional retail business models face unprecedented pressures.

Michel Ohayon, the Bordeaux-based businessman who built his fortune in real estate before expanding into retail, has been indicted for misuse of corporate assets and bankruptcy. His retail empire, which included prominent brands such as Camaïeu, Gap, Go Sport, and La Grande Récré, has largely collapsed, with only about twenty Galeries Lafayette franchise stores remaining under his control. The Financière Immobilière Bordelaise (FIB), Ohayon's primary investment vehicle for three decades, facilitated these retail acquisitions. Despite his initial success in real estate and luxury hotels, his retail ventures faced significant challenges, particularly after the COVID-19 pandemic impacted the sector. The collapse began with Camaïeu's liquidation in September 2022, which affected 2,600 employees, followed by the sale of other retail chains to competitors through commercial court proceedings. Ohayon, who once viewed himself as a saviour of retail jobs and champion of city-centre commerce against e-commerce, now acknowledges making strategic errors in his diversification timing.

IADS Notes: The trajectory of Ohayon's retail ventures reflects broader industry challenges. In March 2024, his Galeries Lafayette franchises secured a crucial debt relief plan, clearing 70% of their €28 million debt. However, the restructuring proved insufficient for some locations, as evidenced by the March 2025 announcement of the Rosny 2 store closure. This followed a February 2024 recovery plan that had already reduced growth forecasts from 11% to 4%, highlighting the complex challenges facing traditional retail expansion strategies.

Galeries Lafayette’s franchisee partner indicted for misuse of corporate assets