Companies

Sports goods manufacturer Le Coq Sportif placed in receivership

Nov 28, 2024 France

The French sportswear company that supplied the uniforms for the country’s Olympic team has been placed under judicial reorganisation by the Paris Commercial Court. It is now seeking new financing solutions

Swiss parent company Airesis, which owns a 75% stake in the brand, has applied for judicial restructuring at the Paris Commercial Court. The company will undergo a six-month court-supervised observation period as it seeks financial solutions.

“Le Coq Sportif is relying on this procedure to respond to the challenges facing the brand while protecting its 330 employees and hundreds of indirect jobs”, said the parent company. The company stressed that it was looking for new investors and strategic partners to support the struggling brand, which is hoping to capitalise on its profile at this summer’s Olympic Games.

“The objective is clear: to capitalize on the success of the Paris 2024 Olympic and Paralympic Games, which has already demonstrated Le Coq Sportif’s ability to be a global brand, while preserving and enhancing French industrial know-how, true pillars of the brand’s identity”, added Airesis.

In its latest trading update, the company said that it was facing “significant financial pressures, particularly in terms of cash flow, with the months of October and November being particularly exposed.”

However, Le Coq has already suffered consecutive quarters of losses and even received a 2.9-million-euro loan from the Paris 2024 Organising Committee in May 2024 to help it deliver on time, of which 150,000 million euros had not been repaid by 30 September, and a 12.5-million-euro loan from the French state in July through BPI France Assurance Export.

Le Coq Sportif is also currently involved in a legal dispute with the French Rugby Federation, which is suing its former kit supplier for an unpaid sum of 5.3 million euros. The French Rugby Federation has since signed a four-year contract with Adidas to produce the kit for its national teams.

Image Credits: marmonsports.com

France Bankruptcy Companies Sportswear