French Probe Investigates Allegations of Fraud in L’Officiel Acquisition

French prosecutors have launched a formal investigation into potential fraud surrounding the 2022 acquisition of L'Officiel, the renowned fashion and luxury magazine publisher, by Chinese conglomerate AMTD. The investigation follows a complaint filed by the Jalou family, the historic owners of the publishing house, according to the Paris prosecutor's office and sources familiar with the case.

The complaint, submitted on March 5, 2025, alleges “trademark infringement, tax fraud, and misuse of corporate assets” by AMTD. The Paris prosecutor’s office has assigned the case to its financial investigations unit within the Paris judicial police, signaling the seriousness of the allegations.

The Jalou family claims that AMTD’s actions have resulted in losses of at least €40 million for Éditions Jalou’s creditors. This claim centers around accusations of misappropriation of funds following the takeover of the company, which at the time was operating under a court-supervised restructuring plan extending until 2028.

A key element of the Jalou family’s argument is that the restructuring plan explicitly prohibited the sale or transfer of the business and its associated trademarks. However, they allege that AMTD has systematically dismantled the company’s assets since the acquisition. Specifically, they point to the unauthorized registration of the “L'Officiel” trademark in approximately 40 countries through a subsidiary based in the British Virgin Islands.

Further accusations include questionable schemes involving license agreements that were terminated and subsequently transferred to overseas companies. The Jalou family contends that these actions constitute “serious and repeated violations of the recovery plan,” jeopardizing the interests of employees, the French tax authorities (URSSAF), and suppliers.

Lawyers representing the Jalou family, Céline Bekerman and Antoine Cadeo, emphasized the cultural significance of L'Officiel, stating, “L'Officiel is a century-old institution of French fashion and cannot be treated as a mere speculative asset.” They expressed confidence in the French justice system to enforce the law and protect the rights of creditors, particularly the French state’s tax claims.

Despite repeated attempts to contact them, AMTD, a diversified conglomerate with interests in digital solutions, media, entertainment, and hospitality, has not yet provided a response to the allegations.