M&S puts French closures on hold

The head of retailer Marks & Spencer's French operation has suspended moves to close its 18 stores, offering some hope to…

The head of retailer Marks & Spencer's French operation has suspended moves to close its 18 stores, offering some hope to 1,700 employees, as it searches for a buyer instead.

The closures, part of plans announced by M&S in March to pull out of mainland Europe, had unleashed protests by its French employees and sharp criticism from the French government.

"At a company council meeting held today, M&S France Chairman Alain Juillet announced his decision to suspend the consultation procedure ... linked to a cessation of activities in order to await the results of a search for purchasers," M&S France said in a statement.

"(Mr Juillet) moreover made it clear he would favour a sole purchaser for all of the stores, allowing a guarantee of jobs," it added.

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A spokesman for M&S in London said the company has had "a number of expressions of interest" in the French stores, but it was too early to give details.

Mr Martine Duvaux, a delegate for the Sycopa trade union of Paris retail employees, welcomed the move. "It goes in the direction of what the trade unions have been demanding," he told Reuters.

M&S France had been looking to close its stores by the end of the year, although Mr Juillet has said he was still on the lookout for a possible buyer.

The chain's employees have staged a series of protests, including marches and even an occupation of the firm's flagship outlet in Paris. Further protests were planned for late-July during summer sales.

The M&S closure plan was one of a spate of mass layoffs announced in France this year that prompted moves to tighten labour laws by obliging companies to justify redundancies as part of restructurings needed to maintain their competitiveness.