Stock market concerns for employment

A new cloud obscured the horizon Monday employees of Fnac, three days before the IPO of their group. The management had to deny a proposed 600 new job cuts mentioned in the press, but failed to dispel fears about jobs. An officer of Fnac quoted by the daily Le Parisien suggests two planes, one called "Mars" which would affect 289 music stores and other "Phoenix", which would cover all the group's businesses (cashiers, librarians, technicians .. .) but only ten stores in Paris.

The distributor of cultural products, which faces a disruption of markets caused by the rise of online commerce, has categorically denied these job losses. But he spoke of negotiations for 18 months with the social partners on "workforce adjustments on the record market" and that could lead to job cuts in stores. However, "in no case" this reflection for 289 positions. "We are well below such a number," said a spokesman told AFP, saying that there would "not necessarily a social plan." Fnac has recently deleted 510 posts including 310 in France as part of a plan to save 80 million euros announced in early 2012. Subsidiary Kering (formerly PPR), which will gain its independence on Tuesday at the general meeting of the group, now has 16,648 employees worldwide in 170 stores, including 10,555 employees in 103 stores in France. Its sales amounted to EUR 4.06 billion in 2012 and its profitability has faltered in recent years. Its net loss more than quadrupled in 2012 € 141.7 million (28.2 million in 2011).
€ 80 million savings

CFO Matthew Malige, told AFP, puts, explaining that this includes an impairment loss of more than € 93 million to the stock exchange, but EUR 37 million restructuring charge and 26 million loss exceptionnelles.La Fnac is profitable, insists Mr. Malige. It reported an operating profit of € 73.3 million in 2012 earnings before its parent, depending on the stock prospectus. But concedes the CFO, we must continue to reduce costs in the face "strong economic economic crisis" and "structural problems in some of our markets."

In its prospectus, Fnac said to have saved 60 million euros in 2012, "about 80 million of savings in a full year" and says he wants to "continue this policy to the same extent over the period 2013-2014" . "We are working on different tracks and so far none has stopped. This goes further renegotiation of leases at reducing our IT costs in our store delivery systems, etc," says Mr. Malige. The unions asked by AFP report not having been informed of possible job cuts. But Thierry Lizé (FO) believes "completely" the information Parisien and "outraged" that the social partners are thus "put out of it."

Fnac placed on the e-commerce

Meanwhile, PPR, refocused on luxury and more profitable than the distribution sportswear, officially becomes "Kering" Tuesday and, having failed to sell the Fnac, discards by putting in stock market.Kering will free distribution to its existing shareholders Fnac share for each package 8 Kering shares they hold. "We approach our independence with confidence because Fnac has a number of strengths," he told AFP Mr. Malige. Fnac judge have successfully taken the turn of e-commerce, unlike its main competitor Virgin, whose liquidation was issued Monday.