This Friday, November 22, 2024, the Paris commercial court placed a famous French ready-to-wear brand in receivership. Faced with financial problems, the sports equipment manufacturer, well known to the public, which notably benefited from international exposure during the Paris 2024 Olympic Games, says it wants to protect its 330 employees.
After Auchan, Michelin and Casa, the wave of job losses sweeping France continues. Strongly impacted by the covid-19 pandemic and faced with competition from online commerce, the physical ready-to-wear sector is struggling to get its business off the ground. A situation which leads to numerous store closures and economic layoffs across the country.
This Friday, November 22, 2024, the Paris commercial court voted for the receivership of a famous ready-to-wear brand “with an observation period of six months on the principle of continuity of operation”. A brand whose editorial staff mentioned financial difficulties at the beginning of November, despite its exposure during the Paris 2024 Olympic Games. Unfortunately, the popularity of the brand worn by the French athletes does not seem to have been enough to improve your financial situation.
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330 employees and hundreds of indirect jobs threatened
This is the Le Coq Sportif brand, 75% owned by the Airesis group. Its poor financial results pushed the famous equipment manufacturer to seek legal proceedings in the hope of finding a way to continue its activity. In search of “financing solutions”the majority group has “requested the opening of a judicial recovery procedure with the Paris commercial court”details the group in a press release.
The French brand hopes to be able to protect its employees and all the jobs that result from its activity. “Le Coq Sportif relies on this procedure to respond to the challenges facing the brand, while wanting to protect its 330 employees and hundreds of indirect jobs”specifies Airesis.
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Le Coq Sportif placed in receivership
Appreciated by sports fans, Le Coq Sportif has nevertheless encountered economic difficulties in recent years. This is demonstrated by the financial results for the first half of 2024 published in September: the group recorded a loss of 18.2 million euros compared to a loss of 10.5 million euros.
In 2023, the equipment manufacturer's total losses amounted to 28.2 million euros. This year to equip French athletes for the Paris 2024 Olympic Games, Le Coq Sportif received a loan of 2.9 million euros from the Paris 2024 Organizing Committee, as reported by our colleagues from France Info. As of September 30, 2024, 150,000 euros remained to be reimbursed by the sports equipment manufacturer. The iconic brand is also at the heart of a dispute with the French Rugby Federation (FFR). “They owe us 5.3 million euros for sponsorship contracts, unpaid royalties, late payment interest”explained Florian Grill, President of the FFR to our colleagues at France Info.
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