Several heirs of the Mulliez family, which owns Auchan, Leroy-Merlin, and Decathlon, were placed under investigation in 2019 in a tax fraud probe. This investigation was opened in 2012 after a complaint from a former family member, Hervé Dubly. The judicial investigation, led by a financial judge in Paris, resulted in searches and the indictment in 2019 of Jérôme and Thierry Mulliez for “breach of trust” and “money laundering of tax fraud.” They are respectively the great-nephew and cousin of Gérard Mulliez, the 92-year-old founder of Auchan. Three financial structures linked to the family were also implicated in January 2023 for aggravated money laundering of aggravated tax fraud. A member of the Mulliez family was placed under the intermediate status of assisted witness in 2019.
A sort of shareholder pact governs the complex and opaque structure of the Mulliez family businesses, which mixes family-owned companies and holdings managing the brands. Hervé Dubly, the origin of these investigations, initially denounced in a complaint in Lille “very high loans without written agreements and without interest granted by group structures to foreign companies (several hundred million) and to individuals via personal or family civil companies (several million).” According to the complainant, these opaque and unjustified loans constitute a breach of trust, particularly in that they do not respect equality between partners. The investigation is looking into this setup which “could also allow for a reduction of taxes in France (for example, benefiting from dividends abroad) and would therefore potentially qualify as aggravated tax fraud or aggravated money laundering of tax fraud,” according to judicial sources.
In 2023, the investigating judges had initially closed their investigations. However, the National and International Verification Directorate (DVNI), responsible for investigating large companies and their subsidiaries, passed on the ongoing tax audit documents to the examining magistrate, according to judicial sources. The submission of these documents into the procedure could delay the outcome and potentially modify the conclusions. While a source close to the case mentioned that the investigation is more about the “organization of the Mulliez companies and holdings” in general rather than individual issues, the Mulliez Family Association (AFM), which represents the family heirs, stated to AFP that they are “completely serene” regarding a procedure “devoid of any foundation.”
“We have explained the perfect regularity of the operations examined. They have the sole purpose of diversifying investments abroad,” assured the association. “The financial flows are completely transparent and align with a logic of economic development. No tax benefit was sought, no tax benefit was achieved. None,” emphasized the AFM. The association also stated its intention to “immediately file a complaint for breach of confidentiality of the investigation, to expose those who, after ten years of an uncompromising but particularly serene investigation, are trying to suddenly instrumentalize this procedure and put pressure on the justice system.”
The Mulliez family is known for their retail empire in France, including popular brands like Auchan, Leroy Merlin, and Decathlon. The ongoing investigation into alleged tax fraud involving some family members has raised concerns about the complex structure and financial dealings within the family businesses. Despite the assurances of the Mulliez Family Association regarding the transparency of their financial operations, the outcome of the investigation remains uncertain. It is yet to be seen how this probe will impact the legacy of the Mulliez family and their business empire in the future.
