French court tells M&S to suspend closure plan

Marks & Spencer must suspend a plan to shut its loss-making network of stores in France because it has failed to consult …

Marks & Spencer must suspend a plan to shut its loss-making network of stores in France because it has failed to consult its workers about the closure, a French court has ruled today.

The decision represents a setback for the struggling company, but will not prevent it from re-submitting the original plans after talks with staff.

Marks & Spencer set off a political storm last month with its sudden announcement that it was closing all its European branches by the end of the year, including 18 stores in France, in a bid to put the group on a more profitable footing.

Unions took management to court, accusing it of failing to comply with a law that requires companies to inform employee representatives before announcing major corporate changes.

READ MORE

A spokeswoman for Marks & Spencer said earlier today that a ruling against the company might slow the shutdown process, but would not sink it.