Société Du Crêpe Willot

"As reported by Patrick Lamm, in his book, Investigation into the Boussac Affair: "Attacked from the right by financial circles and from the left by the leftists of Libé, René Mayer has gotten himself into a fine mess."

"In his book, Investigation on the Boussac Affair, Patrick Lamm estimates the cash obtained thanks to the "generosity" of the commercial court at 600 million francs."

"> "The board of directors is one of the most distinguished ways of wasting time." August Detœuf speaking of O. L. Barenton, confectioner"

""Success is never final, failure is never fatal: it's the courage that counts..." Winston Churchill"

""A sin confessed is half forgiven..." Popular saying"

"Antoine is more convinced than ever that happiness lies in industry, investment, and innovation. But the industry is a mistress that comes at a high cost. Textiles and apparel, increasingly competitive, continue their descent into hell."

"It is also the first time that a group has committed to presenting an economic balance sheet, that is, by proceeding with a revaluation of its real estate assets to give an updated value to its consolidated assets. When questioned by a journalist, Jean-Pierre Willot clarified: "I attach more importance to the economic balance sheet than to the accounting balance sheet in which assets are valued in 1950 francs as if they were in today's francs."

"The formula succeeds beyond all expectations. In four years, the company has repaid its concordat, absorbed about ten affiliates, and opened new stores (including the one at Pont-Neuf, in the Belle Jardinière building). The company becomes profitable again, distributes a dividend after having rebuilt its equity."

"Immediately after the war, in 1947, he created his own fashion house with Christian Dior. From the moment of his first collection, presented in February 1947, his "flower women" who embody the New Look, toured the world. Under the management of his manager, Jacques Rouet, Dior becomes an essential star of French luxury. Manufacturing licenses for all kinds of fashion accessories are sold worldwide."

"Its concept is innovative compared to the spirit and organization of the traditional furniture store. The sales areas, averaging 2,000 square meters, offer a significant choice for customers. A strong storage capacity allows the establishment of the principle of takeaway sales, whereas previously one had to order furniture without being able to have it immediately. The chain, through its purchasing power, has considerable negotiation capacity."

"Retrenched in his ivory tower, unwilling to delegate a single shred of his power, Marcel Boussac gradually loses his best collaborators and contact with the reality of the world around him. With the liberalization of international trade, the loss of captive markets linked to the decolonization process, vertical integration, which was once a strength, becomes a handicap. Vertical integration implies intermediate inventories at each stage of production."

"On May 24, 1978, Marcel Boussac writes a letter to the banks and public authorities, to indicate that he is ready to make new sacrifices on his personal assets and to establish a new management team that would have the confidence of the shareholders. As a last resort, he had brought in a "providential man," Jacques Petit, former manager of Prisunic and then of Manufrance, who could only assess the damage."

"In this month of August 1978, the brothers and their collaborators work tirelessly on the elements of the Boussac file that the judicial representatives have kindly given them. Antoine Willot visits all the factories at lightning speed. The accounts of the various companies are audited by the firm Jacques Vigne. The group's real estate assets are identified and valued. All this work leaves little time for summer vacations... A takeover offer is made by the brothers through letters dated 3, 9, and 17 August."

"The Boussac episode was merely a breath of fresh air. This operation also had the advantage of refurbishing the brothers' image and eliminating a competitor who was undercutting market prices."

"La stratégie générale des dirigeants s’apparente à ce que l’on appelle parfois la fuite en avant, qui consiste à résoudre les problèmes par des coups."

"Sleep tight, good people... "Good fellows, these Willots," headlines the Liberté du Nord. Le Matin of January 21, not to be outdone, writes: "How can one not admire, indeed, a group that storms companies, suddenly announces massive layoffs, juggles billions, and wants its brand image to no longer resemble that of the big bad wolf...""

"On May 10, 1981, the outcome is announced, François Mitterrand is elected president of the Republic. The socialists are going to come to power... For the brothers, it’s consternation... Jean-Pierre Willot, who always has one move ahead on the chessboard, but not always at the right time, imagines a way out for himself. The solution is to spin off the industrial activities, by creating seven autonomous entities: hygiene, flax, household linens, fabrics and apparel, sports and leisure, packaging, engineering and mechanics. This spin-off allows to separate "the wheat from the chaff.""

"Advertising sells. The proceeds from the sale exceed all expectations and bring in more than 10 million francs, barely a month of the losses generated by BSF.... This episode, extensively commented on in the press, will contribute to maintaining a despicable image of the brothers, financiers with the demeanor of beasts, scattering a luxurious jumble, without conscience or scruple, just as they announce the elimination of nearly a thousand jobs."

"The empire slowly crumbles. Bernard Willot, the eldest and the "wise" of the siblings, courageous but not reckless, and who has already stepped back, requests at the age of 57 to supplement his rights to a well-deserved retirement. Régis Willot, who suffers from heart problems, significantly distances himself from running the group."

"Furthermore, the conditions under which the parent company was remunerated for the services provided to its subsidiaries, as well as the remunerations for guarantees given as security, have been profoundly overhauled."

"Apart from the petty political considerations mentioned above, two main reasons can explain the brothers' descent into hell. The decision to acquire Galeries Anspach and especially Korvettes was a huge strategic error."

"Moreover, to ensure that the brothers cannot return to the head of their group, the government has passed the following provision in article 21-1 of the law of September 15, 1981: "When it considers that the survival of the company requires it, the court, upon the request of the public prosecutor or on its own motion, may, by a reasoned decision, notified to the parties, condition the approval of any concordat in advance on the replacement of one or more corporate officers.""

"Quickly, a witch-hunt atmosphere is established around the brothers and the responsible executives of the group. The brothers are followed day and night by police cars. They must surrender their passports and driving licenses to the judicial authorities. They are prohibited from leaving the country. Both their headquarters and their homes are thoroughly searched by Customs. Customs also has a list of forty executives, potentially suspected of complicity, in case they cross the borders with compromising documents or valuables."

"However, to use the words of Jacques Delors, "there is no question of accepting, in the principles to be implemented, the nationalization of losses and the privatization of profits," the state cannot indefinitely subsidize doomed businesses and for that, he proposes a thorough reform, both in letter and spirit, of the bankruptcy law."

"As Alain Boublil explains in his book The Uprising of the Seraglio: "This disagreement stemmed from a misunderstanding. Dominique de La Martinière thought he would have authority over René Mayer, as a majority shareholder does over his CEO. But that was not the contract made between the State and René Mayer. " Dominique de La Martinière intends to keep control and demands to have the majority on the Company's board of directors. But René Mayer intends to govern with confidante personalities... A tug of war begins. The head of IDI, the majority shareholder, throws his hat into the ring and wins the bet. Of the twelve board directors, eight will be appointed from within the IDI circle including Jean-Pierre Lacour and Jean-Paul Elkann."

"Pierre Mauroy, while visiting Poitiers, stated to the press: "Business leaders whose difficulties originate from dishonesty or incompetence will be treated with rigor." Textile industrialists find these remarks outrageous. "Who will decide whether a business leader is competent or not..." wonder the bosses from the North, who interpret the Prime Minister's words as an explicit threat."

"This company will be established with a capital of 200 million francs. Its new corporate name will be Compagnie Boussac Saint Frères. Starting from July 1, 1982, it will receive from the provisional administrator the lease management of Boussac Saint Frères for a period of five years. In financial terms, the inventory will be brought in at a value of 1.1 billion francs and the realizable and available assets for 500 million francs, all payable at the end of the five years. The royalty to be paid to BSF by CBSF will be 0.10% of the tax-excluded turnover."

"For René Mayer, the return to profitability first requires maximizing the use of production tools. But to sell quantities, prices must be slashed and often sales are made at a loss. Gérard Bélorgey notes in his memoirs: "At his first meeting with the executives, he is pleased that sheet sales have doubled. We lose 2 francs for every meter sold..." Instead of announcing a return to profits, the increase in turnover is publicized. This dumping infuriates competitors who cry scandal. The subsidies granted to Boussac result in completely distorting competition in the market, particularly in the areas of upholstery fabrics and household linens."

"A committee is set up with the support of the real estate service, which can offer adapted conditions for the provision of industrial buildings with the approval of trustees, these assets belonging to the mass of creditors. It's a hunt for buyers. Gérard Le Gai scouts in all directions to find serious and solvent purchasers... The deal is tempting. You can set up a small business for nothing with some extra money."

"The need for cash flow continues to grow, and the president's star continues to fade...""

"The windfall effect attracts the vultures. Unfortunately, later on, Gérard Le Gai, to demonstrate his effectiveness and by facilitating these business takeovers by "professionals," fraudsters specializing in asset stripping, will participate in mishaps, which will earn him a conviction for complicity to severe penalties."

"On this occasion, the company publishes a very detailed information document on what it calls: "1984, the state of play.""

"It is true that nearly one billion francs were consumed in just over two years: one third in investments, one third in restructuring costs, and the rest in working capital needs and operating losses. However, turnover has increased by 36.5% in current francs, particularly thanks to the extremely rapid development of the hygiene business. The restructuring effort was considerable. In two years, the number of industrial sites was reduced from 97 to 75, thanks to disposals or closures of establishments. At the same time, the workforce decreased from 20,260 employees in May 1982 to 15,974 in August 1984, ending at 14,990 by the end of December 1984. During the same period, 328 million in investments were made. The "baby" has become much more presentable to interest investors and to enable them to complete the enormous grooming that has just been carried out at the taxpayer's expense... At the top of the Company, the wind is turning. During the preparation of the 1985 budget, a deep disagreement appears between the chairman and his CEO."

""Whenever you see a successful business, tell yourself that it is because one day someone made a courageous decision." Peter Drucker"

"A new player has therefore just invited himself to the table of contenders. Bernard Arnault is indeed not known to the general public. He is a rather discreet character, raised in the tradition of the great families of the North. His father, Jean Arnault, leading the Roubaisien building and public works group, Ferret-Savinel, is a recognized and appreciated business leader by his peers."

"• The Ferinel plan is being implemented. It incorporates elements already analyzed by the management and the current team, contained in the three-year plan (1984-1986) and relies on various diagnostics provided by expert firms: A. D. Little, etc. Hughes de Lasteyrie, assistant director of Dreyfus bank supervises its writing, which I actively participate in, along with the financial director and the administrative director of the headquarters, under the vigilant eye and following the indications of Bernard Arnault and Pierre Godé. The Ferinel group thus proposes a sustainable solution to ensure the recovery and permanence of the Agache-Willot group by relying on the prior takeover of SFFAW and by integrating the Compagnie Boussac Saint Frères into the Agache-Willot group: - legally, the agreement signed with Mr. Willot on November 14, 1984 ensures the takeover of SFFAW, resolves the complex legal problems that condition the survival of the Agache-Willot group and allows for the presentation of a concordatory solution; • - On the industrial and social level, the plan includes restructuring measures already presented to the public authorities and currently being implemented; • - On the economic and financial level, a capital increase of 400 million francs for SFFAW is planned, to be carried out by private investors brought in by the Ferinel group and Dreyfus bank. This will be carried out as soon as the concordat is approved."

"The refocused Ferinel group experiences rapid and fruitful development. This success encourages Bernard Arnault to find other playgrounds. He acquires Le Chasseur français which he will resell and which will earn him a dispute with Bernard Tapie. He attempts an incursion into fast food, without success. The arrival of the left in 1981 opened new horizons for him. Charmed by the idea of continuing to practice his profession in a broader and more open market, and discovering new ideas, he decided to go and establish a real estate development subsidiary in the United States himself."

"This result would nevertheless suffice for the happiness of his father who is himself a graduate of Ecole Centrale... but this does not satisfy Bernard's ambition who wants to enter Polytechnique, which he succeeds in the following year. Such is his determination... After Polytechnique, he enters the family business in which he immediately makes his mark."

"The Boussac Saint Frères file is one of those. The quality and influence of the Christian Dior brand greatly impressed Bernard Arnault. He would really like to know more... He knows the brothers, who are also from the North, why not meet them? On July 15, 1984, a first meeting takes place in Croix, at Croquet, the name of Jean-Pierre Willot's lavish home. Who will outsmart whom? Bernard Arnault mostly talks about Dior, but it's all or nothing..."

"The brothers know that their case and their fate are no longer in the hands of the Élysée but Matignon, and that, as with other hot issues like steel, papermaking, the government wants to clean house. In the absence of a solution, liquidation could not be excluded. With Bernard Arnault, they have the opportunity to come out on top, and then, maybe arrangements can be made... Thus, on November 14, 1984, an agreement is signed between the brothers and Bernard Arnault."

"Both, in their different capacities, were familiar with the Boussac Saint Frères case that Pierre Godé had already indicated to him as a possible target. François de Combret did not hesitate to encourage Bernard Arnault to approach Antoine Bernheim in Paris, who had in his drawers, among others, this business acquisition file to study. Politically, a new more liberal government had just been appointed. Investment banks have many business acquisition files rich in opportunities for those who know how to seize them."

"The court will remind that the principles set by a ruling of the Court of Cassation of February 4, 1985 state: "The interest of the group is defined as a common interest distinct from the interest of the dominant company and inseparable from the particular interest of the member companies. If the collective interest conflicts with the singular interest of a company, it is the latter that must prevail when the group's strategy exposes it to a risk to which it should not normally be exposed." Consequently, it was necessary to verify if, within the Agache-Willot group, subsidiaries like Dior, Conforama, Au bon Marché, or la Belle Jardinière had not suffered impoverishment by BSF or SFFAW, without possibility of compensation. Thus, the court will convict Jean-Pierre, Antoine, Bernard, and Régis Willot of misuse of corporate assets and credit for the benefit of Korvettes and to the detriment of Conforama, Bon Marché, and Dior."

"Finally, for the detriment of Dior, the seizing by BSF of a part of the capital gains realized on the sale of the SCI owning the Dior buildings on Avenue Montaigne as well as the issuance of two checks of 1,500,000 and 1,200,000 francs intended for a fund transfer to the United States for Korvettes."

""From a small family business, the creation of an international conglomerate is based on a number of simple but profitable ideas: • - choosing external growth by purchasing struggling companies at low prices that hold latent resources; • - diversification focused on the textile origin of the group and also the distribution sector; • - restructuring and making profitable the acquired companies through decentralized management and the search for productive niches; • - liquidation of dormant and unnecessary real estate assets. The originality of the system was to develop without any equity from the Willot brothers, by drawing the necessary financial resources for this expansion from the internal resources of affiliated companies... and thus the Willot brothers increased their personal fortune by increasing the value of their stakes, their dividends channeled by SFFAW and the salaries they allocated to themselves in the various subsidiaries.""

"The Willot brothers have left the business scene for more than thirty years now. Generations born at the end of the thirty glorious years probably do not even know their name. And yet their feats of arms, at the time, largely made headlines and deserve to be told. This is the subject of the book by Hervé Maupin, who participated as an actor with them in the structuring of the sclerotic sector of the textile industry caught off guard by too rapid opening of borders. Originating from the middle bourgeoisie of the North, at the head of a modest family business, the Willot brothers will, through force of energy, common sense, and ingenuity, overturn an industrial world trapped in past splendors. Their methods and physical appearance made them favored targets of journalists and caricaturists. Very soon, they were nicknamed the "Daltons." Daring and conquering, they cheerfully trampled on the turf of the establishment. Their binge of acquisitions, a real headlong rush, eventually caused them to bite the dust. The economic and social stakes they represented with the arrival of the Left in power in 1981 led to a pseudo-nationalization of their industrial activities."

"A simple law governs the functioning of the industrial machine: the need to have sufficient equity to finance inventory and work-in-progress, customer accounts, and investments, a condition essential for its sustainability. This equity can be usefully supplemented by recourse to supplier credit and medium and long term loans. Equity could also have been found by increasing the capital of already listed group companies or by introducing profitable subsidiaries or activities on the stock market. But their lack of profitability did not allow it, and the brothers preferred to remain masters in their own house."

"The acquisition of new businesses then becomes a means of survival and not as an end in a strategy of external growth."

"In this world of French textiles, very dispersed and inward-looking, the "Willot machine" acted like a sort of boa constrictor that would swallow entire swaths of industries, to return only restructured factories, stripped of their surplus jobs and their non-operational assets that had been of no use until then. It’s a kind of recycling, done with the financial means at hand. These operations worry actors and observers because of their scale and setups, but public authorities eventually come to see them as a natural phenomenon, often useful, or at worst, a necessary evil. The Willot brothers will not have been just "quacksalvagers of lame ducks"."

"From their golden retirement, beyond the ruins and also the nuggets of their lost empire, they witnessed the emergence of a new major boss and the creation of the first global luxury group. They were the originators of another destiny."

"Now the task is to make the industrial part of the group profitable and finish "slimming down the mammoth," which is no small feat."