TERMINATION BLUES: Editions Jalou, publisher of L’Officiel, has been placed into receivership following a court decision ordering it to pay 4.2 million euros, or $5.1 million at current exchange, to its former Russian licensee following the early termination of their contract.
“Editions Jalou challenges the validity of its former Russian licensee’s claims and has decided to lodge an appeal. Consequently, and as a precaution, the management of the company has chosen to go into technical receivership pending the decision,” Jalou Media Group said.
Edouard de Lamaze, lawyer for Jalou Media Group, said it would seek to get the Paris Court of Appeal to reverse the decision. The group alleges the Russian licensee failed to respect the conditions of their agreement, prompting it to terminate the license a year early.
Benjamin Eymère, Editions Jalou’s managing director, noted the family-owned group has entered 10 new markets in the last two years, increasing its revenues to 33 million euros, or $43.8 million, in 2014 from 24 million euros, or $30.9 million, in 2012. All dollar rates are calculated at average exchange for the period concerned.
“We have more than 600 advertising clients in the luxury sector and we print 24 million copies per year under the L’Officiel banner for 70 million readers. We are taking all necessary measures to ensure that normal business activity and our development projects continue unchanged,” he said.
The family-owned group also comprises magazines including Jalouse, L’Optimum, L’Officiel Hommes, L’Officiel Art and La Revue des Montres.