Courtesy of Mish.
The number of French business bankruptcies hit a record in the third quarter of 2013 and the yearly total is on a pace that will come close to the total reached in the dark days of the great financial collapse in 2009.
Via translation here are a few articles from Le Monde.
Corporate Liquidations Reaching New Heights in France
The newspaper L’Autre Journal has filed for bankruptcy.
Michel Butel, the former boss of the newspaper does not admit defeat so far, and promises new adventures. But under another name …
In the last twelve months, 43,981 companies were liquidated after having filed for bankruptcy, according to the records of the credit insurer Coface. This is a record number of third quarter bankruptcies.
Mory Ducros, Largest Bankruptcy in France for a Year
With 5,200 jobs at stake, the bankruptcy of transport company Mory Ducros is in social terms the heaviest recorded bankruptcy this year. The previous failure of this magnitude was Neo Security, the second largest French security firm, which was declared insolvent in April 2012. At the time, it employed him as more than 5,000 people.
Some 62,500 company s should file for bankruptcy this year, almost as much as during the dark year of 2009, according to credit insurer Coface. The number of bankruptcies may be slightly lower in 2014.
Ayrault Wants to “Save as Many Transport Jobs” as Possible
Transport company Mory Ducros, which employs 5,200 people in France, announced during a special Works Council (EWC) on Friday its request for receivership with the Commercial Court of Pontoise and the appointment of a temporary administrator.
Unions of the company are very pessimistic. “It is feared between 2,000 and 3,000 job cuts,” said Fabian Tosolini, national secretary of the Federation of Transport of the French Democratic Confederation of Labour (CFDT). This is one of the biggest bankruptcy filings since the start of François Hollande term, and one of the largest ever happened to France since the collapse of Moulinex in 2001.
Following the bankruptcy announcement, Prime Minister Jean-Marc Ayrault commented “We are looking for all solutions, site by site, with the social partners, of course. Where we can find the buyers, everything will be done to save the maximum number of jobs. This is a very difficult job.”
Arnaud Montebourg, the Minister of Industrial Renewal, is “mobilized” on this issue. Potential buyers have expressed interest but no proposal has been expressed.
Frédéric Cuvillier, Minister of State Transport added “Everything will be studied: first how to consolidate the rescue at least 2,000 jobs, and then look at how we can ensure the recovery or offer jobs to those who are victims of this plan.” The Minister announced that he wanted “to meet as soon as possible” with management and the unions.
The prime minister, the minister of industrial renewal, and the minister of state transport are all mobilized. How comforting….
