Judicial recovery for this Sports brand in great difficulty

Placed in receivership, Le Coq Sportif is trying to overcome considerable financial losses. The historic equipment manufacturer is counting on an observation period to stabilize its activity, while seeking new investors and hoping to benefit from the momentum of the Paris 2024 Olympic Games.

A procedure to save an iconic brand

The Paris commercial court has placed Le Coq Sportif in receivership, a decision announced by its Swiss parent company, Airesis. This procedure includes a six-month observation period. The objective is twofold: to maintain the operation of the company while finding solutions to resolve its significant financial difficulties.

Airesis stressed the importance of this measure to protect the 330 employees of the equipment manufacturer as well as hundreds of indirect jobs. “ This recovery period is also an opportunity for the company to be able to initiate and finalize discussions with new investors and strategic partners in order to sustain its activity. », Specifies the group. The critical financial situation had been mentioned as early as October, when Le Coq Sportif announced that it was actively seeking financing to cover seasonal cash flow tensions.

The company nevertheless remains confident in its future. Airesis is banking on the influence of the Paris 2024 Olympic and Paralympic Games to strengthen the international visibility of the brand. By dressing the French delegation, Le Coq Sportif hopes to capitalize on this event to demonstrate its potential as a global brand.

Significant losses for Le Coq Sportif

Despite these hopes, the figures show an alarming situation. In the first half of 2024, the brand recorded a loss of 18.2 million euros, up compared to the 10.5 million lost over the same period in 2023. Over the whole of last year, losses reached 28.2 million euros. To maintain its activity, Le Coq Sportif benefited from a loan of 2.9 million euros from the Organizing Committee for the Paris 2024 Games and financial support of 12.5 million euros granted in July by the French State via BPI France Assurance Export.

These difficulties are aggravated by a dispute with the French Rugby Federation (FFR), which is claiming 5.3 million euros in unpaid amounts from the equipment manufacturer. Despite this dispute, Airesis highlights the brand's French industrial know-how as a major asset for its relaunch.

With the support of financial partners and the momentum of the 2024 Olympics, Le Coq Sportif hopes to restore its image while stabilizing its economic model. But the outcome of this recovery period will depend on the company's ability to convince investors and customers of its potential for rebirth.