Parisot Industrie placed into judicial reorganisation in eastern France

A severe blow for this business in eastern France.

This is deeply troubling economic news for the Vosges and Haute-Saône departments. Parisot Industrie, a subsidiary of the P3G group employing 416 people, was placed into judicial reorganisation on Monday 8 June. The flat-pack furniture manufacturer employs 282 people at Saint-Loup-sur-Semouse in Haute-Saône and 134 at Mattaincourt in the Vosges.

Parisot Industrie enters judicial reorganisation

Quoted by BFM, the lawyer representing employees at the affected sites said:

“This judicial reorganisation should make it possible to draw up a plan to restore balance and repay part of the debts, but the situation is very difficult. There is virtually no cash left, and employees are bearing the consequences. Management could have anticipated this: the problems did not begin yesterday, and other options, such as safeguard proceedings, could have been considered several months ago.”

A company facing difficulties

Although the company name may not be widely known, it supplies several major French retailers, including Conforama, But and Leroy Merlin. However, the business lost €6.5 million last year, while its turnover has fallen by 30% over the past two years.

Les Échos reports that employee representatives had already triggered an alert procedure in May. A CGT representative said: “We are in a state of uncertainty. Judicial reorganisation is a positive step because it means activity will continue, but we are waiting for more information.”

Pressure on the P3G group

The news comes at a difficult time for P3G, as another of its subsidiaries, flat-pack furniture business CBA Meubles, formerly Demeyere, which employs 363 people, was also placed into judicial reorganisation last week.

Quoted by the financial daily, Jean-Charles Parisot, president of PG3 Group, struck an optimistic note: “The proceedings that have been opened must provide the framework we need to move quickly, develop credible continuation plans and preserve a French industrial base.”

According to the same publication, citing sources close to the matter, the judicial reorganisation could be intended to “create synergies” or even merge the two companies, rather than sell them to another player.