(BFM Bourse) – The French specialist in logistics products and services has announced the opening of a safeguard procedure for its benefit. The group says it is weakened by the setbacks of its subsidiary Metalliance.
At the end of 2022, Amazon had identified Gaussin’s know-how and ordered more than 300 vehicles for its logistics warehouses.
More than a year later, the tide has clearly turned for Gaussin. The French specialist in logistics products and services announced Wednesday evening after the close of the markets that it had been placed in safeguard procedure.
Gaussin has decided to place itself under the protection of commercial justice, as the company explains that it has been facing operational and governance difficulties for several months which have had serious repercussions on the company’s industrial capacity.
In mid-February, Gaussin indicated that it had suffered a sharp drop of 37.5% in its turnover in 2023 to 35.7 million euros, while it expected to record a significantly higher turnover. , at more than 100 million euros.
The group was unable to “achieve the expected objectives”. He attributes this significant gap to delays in delivery of important components for his vehicles, but also to internal elements within the company. Gaussin cites “irrational decisions” of the deputy general director who was dismissed in December, two months after his appointment, as part of a minority stake in the Czech group CSG, in October 2023.
So many elements which penalized Gaussin’s production and deliveries. The French specialist in logistics products and services also blames “poorly controlled orders from its subsidiary Metalliance, which resulted in 34 million uninvoiced outstandings as of December 31, 2023. This weighed on Gaussin’s working capital requirements .
Furthermore, Gaussin deplores Metalliance’s decision to place itself in safeguard procedure. This “contentious unilateral decision and without consultation of its general director” only increased the difficulties of its parent company.
Opening a backup procedure
To make matters worse, Gaussin’s efforts to seek new financial partners “have not been able to materialize to date”. Expressions of interest “do not provide the group with a lasting refinancing solution”, and as a result the company has put an end to the mission of Steve Filipov, as general director. He was appointed at the end of February with a view to turning around the company and had various missions to “accelerate the production of the order book, control the company’s expenses and quickly put in place the financing necessary for its activities” .
In this context, Gaussin announced the opening this Wednesday of a safeguard procedure by the Vesoul commercial court, in order to guarantee “the sustainability of the company and maintenance of employment”.
For a company in difficulty, the safeguard procedure is likely to increase its chances of reaching a debt restructuring plan with its creditors. France implemented this procedure in 2006, which is an alternative to judicial recovery. The principle is (almost) the same since it involves avoiding the liquidation of a company with payment difficulties.
A continuity plan
In the case of Gaussin, the opening of the safeguard procedure will allow management to work on “a continuity plan and an adjustment of debt maturities”. It will continue “the restructuring measures already initiated” and will work “to mobilize new industrial and financial partners in order to ensure a sustainable revival of activities”.
To date, there is no situation of cessation of payments and operational continuity over the next six months is ensured by positive cash flow as of March 21, without recourse to external financing. To respond in the short term to customer demand and generate turnover, Gaussin specifies that part of the assembly of logistics vehicles could be carried out on the Héricourt site.
However, Gaussin warns that it will not be able to finalize and publish its financial statements for December 31, 2023 on time, and “that they will be published at a later date”.
The company adds that it will keep the market informed of the progress of this safeguard procedure but also of the evolution of its financial situation. On the Paris Stock Exchange, Gaussin collapsed by more than 45% to 0.253 euros this Thursday around 2:25 p.m. after the announcement of the opening of a safeguard procedure for its benefit.
Sabrina Sadgui – ©2024 BFM Bourse
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