PARIS — LVMH Louis Vuitton Moët Hennessy is to shut down Franck et Fils.
The French department store located in the ritzy 16th arrondissement is to be replaced by a branch of La Grande Épicerie, the luxury food temple of Le Bon Marché, which is also controlled by LVMH.
A spokeswoman for the group told WWD: “The management of Franck et Fils, group subsidiary of Le Bon Marché, have this week informed all their employees, 72 people in total, of the plan to transform the Franck et Fils store into La Grande Épicerie de Paris.”
Franck et Fils is expected to cease trading in July 2016, she added.
“Given the circumstances, the group of Le Bon Marché envisages no layoffs and is committed to proposing an employment solution to each employee of Franck et Fils,” the spokeswoman said.
The planned opening of the new food temple is slated for fall 2017. However, the project, which is eventually to result in the creation of 180 jobs, was “subject to obtaining prior administrative authorization,” the group explained.
Industry sources said the decisive factor behind the change was Franck et Fils’ highly competitive location on the Rue de Passy, a busy shopping street with a great concentration of clothing stores with a largely local clientele.
Franck et Fils has been under the LVMH umbrella since 1994, and the banner was expanded to include men’s wear in 2008.