Pallio, the French chain of multi-brand stores bought by the Portuguese Aerosoles group in 2003, plans to sell or close the majority of its 60-odd stores and department store corners. About one-third of its stores are factory outlets and another third are small multi-brand shops located in downtown urban centers. The final third consists of concessions within Galeries Lafayette department stores in various parts of France, which will likely be closed down in connection with the previously mentioned reorganization of their shoe offer.
The current plan is for Pallio to keep in operation keeping only 23 relatively profitable stores, including 17 factory outlets that sell surplus stock from various suppliers, led by the 35 separately managed single-brand Aerosoles stores in France.
The move follows a decision last April 30 to place Pallio in receivership, after several years of losses and after exploratory attempts by Aerosoles to sell the chain. Court authorities have given the management six months of protection from creditors to make Pallio financially viable again. Company officials indicate that Aerosoles should be able to decide before then whether to keep the remaining assets or to put the restructured operation up for sale.
Pallio had sales of €16 million last year. The company’s head office and warehouse near Evreux, northwest of Paris, has been hosting the management and the logistics for three other companies owned by Aerosoles