PARIS — Falling to competition from Europe’s fast-fashion retailers, one of France’s oldest discount institutions, Tati, has filed the equivalent of Chapter 11 proceedings here.
Paris’ Tribune de Commerce is expected to outline a turnaround plan today, the group said in a statement. Tati has stopped paying its suppliers and its stores are no longer receiving merchandise.
The 55-year-old family-owned chain, with 27 stores in France and close to 1,200 workers, blamed the situation on the poor economy.
Tati’s sales have fell steadily during the past few years. In an attempt to reverse the slide, it inaugurated a new discount concept this spring called, “La Rue est a Nous,” or “The Street Belongs to Us.”
But it seems that it was too little, too late. During the past decade, discount chains in France have suffered from two fronts, with hypermarkets like Carrefour, and such cheap-chic retailers as Sweden’s Hennes & Mauritz and Spain’s Zara cutting deep into their market share.
Last year, Tati’s revenues declined to $160 million from $176 million a year earlier.
Tati also operates a discount jewelry chain, Tati Or, and a wedding apparel and accessories concept, Tati Mariage.