Having been placed under judicial administration by a commercial court in Lyon for a period of six months at the end of October, insolvent French lingerie maker Lejaby is now the subject of a sale order.

According to company president Raymond Mahé, Austrian group Palmers, which has owned Lejaby since 2008, does not have the financial capacity to support a continuation plan (for Lejaby) and to build stocks for the spring-summer 2012 collection.

The judge at the Lyon commercial court, the judicial administrator and Lejaby have set a closing date for bids of end-November. Selected candidates would present their offers before the court around the middle of next month.

Lejaby puts its difficulties down to a significant shrinking in the multi-brand retailer channel, the main outlet for its products.

The lingerie firm, which closed three of its four French production sites at the end of last year, posted a loss of EUR2.7m (US$3.7m) for the 2010/2011 financial year.

Restructuring at the company, which employs close to 450 staff in France, has also entailed almost 200 jobs cuts and the transfer of production to North Africa.