French cosmetics group Alès goes into receivership
French cosmetics group Alès, owner among others of the Lierac and Phyto brands, filed for receivership on July 6. The Paris trade court has approved the application, for a six-month monitoring period, while the group’s sale is being considered.
French businessman Patrick Puy, who has become a byword for company restructuring in the fashion industry with Vivarte and is currently busy with ailing group Kidiliz, was appointed head of the Alès group's executive committee last December, tasked with “optimising production operations and procedures.” Since 2018, the Alès group has been under fire from some of its shareholders, critical of the way it is run. The Covid-19 crisis seems to have drastically aggravated the situation of the company set up by Patrick Alès in the 1970s.
“The management of Alès Groupe will seek every solution to enable the business to carry on in the best possible fashion, protecting jobs, settling debts and initiating a formal search for investors, as part of a recovery plan to continue operations, or with a view to selling [the group],” stated Alès Groupe.
Given the uncertainty surrounding the company’s future, trading in Alès Groupe shares has been suspended since June 19.
The group’s operational subsidiaries are not involved in the receivership procedure. The court has appointed Hélène Bourbouloux of Selarl FHB as judicial receiver, while Stéphane Gorrias of SCP BTSG will act as the group’s judicial representative.
The Alès group is set to publish its Q2 results on July 30, ahead of the AGM scheduled for September 17.
As of June 30, the group reported a revenue for the 2019 financial year of €208.6 million, up 2.7% in like-for-like terms, and up 1% on published figures. Net income was in the red for €39.1 million, compared to a shortfall of €15.4 million a year earlier, when the result had been boosted by the sale of fragrance brand Caron.
The Alès group owns a portfolio of brands which includes Lierac, Phyto, Phyto Specific, Jowaé and Laboratoire Ducastel.
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