2024-11-22 21:41:00
For Le Coq Sportif, the Olympic Games effect has dissipated. Airesis, the parent company which owns 75% of the sports equipment manufacturer, announced on Friday November 22 that the sponsor of the French Olympic team was placed in receivership.
“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”declares Airesis in a communiqué. The company, in difficulty, had announced to the end of October look for “financing solutions”.
Airesis specifies that the equipment manufacturer had “requested the opening of a judicial recovery procedure with the Paris commercial court”. “This request was examined by the court during a hearing which confirmed the judicial recovery with an observation period of six months on the principle of continuity of operation”adds the press release.
“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 and strengthen its economic model”details the company.
Airesis points out that “the objective is clear: capitalize on the success of the Paris 2024 Olympic and Paralympic Games, which has already demonstrated the ability of Le Coq sportif to behave as a global brand, while retaining and promoting French industrial know-how, true pillars of the brand identity ».
The equipment supplier for the French delegation during the Olympic Games
According to its financial results for the first half published at the end of September, the group posted a loss of 18.2 million euros compared to a loss of 10.5 million in the first half of 2023, and 28.2 million for the entire last year.
Le Coq sportif, which equipped the French delegation during the Olympic Games, also obtained a loan of 2.9 million euros from the Paris 2024 Organizing Committee in May 2024, of which 150 remained as of September 30. 000 euros to be reimbursed. The group also obtained a loan of 12.5 million euros in July from the French State, through BPI France Assurance Export.
The company is also in the middle of a dispute with the French Rugby Federation, which is claiming 5.3 million euros in unpaid amounts from its former supplier.
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#Coq #sportif #receivership
What are the implications of Le Coq Sportif’s judicial recovery for their role in the Paris 2024 Olympic Games?
**Interview with Lucie Martin, Sports Business Analyst**
**Interviewer:** Thank you for joining us today, Lucie. Recently, Le Coq Sportif announced that it has entered a judicial recovery procedure. Can you explain what this means for the brand, especially in relation to the upcoming Paris 2024 Olympic Games?
**Lucie Martin:** Thank you for having me. The judicial recovery procedure essentially allows Le Coq Sportif some breathing room to reorganize its finances while continuing its operations. It’s a protective measure that aims to save jobs and find new investors or partners. Given that Le Coq is the equipment supplier for the French delegation at the Olympics, there’s an opportunity for them to leverage this high-profile event to regain visibility and possibly attract new financial backing.
**Interviewer:** Despite being the official sponsor for the French Olympic team, the company has reported significant financial losses. What do you attribute these losses to?
**Lucie Martin:** Several factors could be contributing to these losses. Market competition in the sports apparel sector is fierce, with numerous global brands. In addition, supply chain disruptions and rising production costs may have impacted their profitability. Their recent financial results reflect a struggle to adapt to these challenges, especially in light of the heightened expectations that come with major events like the Olympics.
**Interviewer:** Airesis, the parent company of Le Coq Sportif, stated they want to capitalize on the success of the Paris 2024 Olympic and Paralympic Games. How do you think they can effectively achieve this?
**Lucie Martin:** To leverage the Olympics, Le Coq Sportif needs a robust marketing strategy that highlights its French heritage and craftsmanship, which resonates well with both home and global audiences. They should also engage with athletes and influencers to promote their products leading up to and during the games. Additionally, emphasizing their commitment to innovation while maintaining their French industrial know-how can enhance the brand’s identity and appeal.
**Interviewer:** What do you think the immediate next steps should be for Le Coq Sportif to stabilize their operations?
**Lucie Martin:** The priority should be to finalize discussions with potential investors or strategic partners as soon as possible. They need to streamline their operations and possibly reassess their product lines to focus on what sells best or aligns with market demands. Engaging directly with their customer base through innovative campaigns and possibly collaborations could reinvigorate their brand presence.
**Interviewer:** Thank you, Lucie, for your insights. It will be interesting to see how Le Coq Sportif navigates these challenges leading up to the Olympics.
**Lucie Martin:** Thank you for having me. I hope for a turnaround for them, especially with such a grand event on the horizon.
