Posted Jan 10, 2023, 5:29 PM
For the European leader in retirement homes, which manages more than 900 establishments (87,000 beds) in twenty-two countries, the year 2022 was that of the descent into hell. And for the many investors who held the title in the background, the potion was particularly bitter. The stock recorded a staggering 93% drop in 2022.
It all started in January, with the publication of the book Les Fossoyeurs, by journalist Victor Castanet. He denounces acts of mistreatment but also serious dysfunctions coupled with financial fraud. While all ESG investment funds are rapidly divesting themselves of the title due to these serious controversies, a major clean-up is being carried out. The boss of Orpea, Yves Le Masne, is sacked, and Laurent Guillot, former deputy general manager of Saint-Gobain, is propelled to the helm to rebuild the group. He is accompanied by the former leader of the SNCF, Guillaume Pepy, who chairs the board.
Targeted by a multitude of legal investigations, the company also saw its financial situation deteriorate at breakneck speed. While its occupancy rates were struggling to rise in France due to the media coverage of the scandal, its results fell into red, weighed down by heavy asset write-downs.