A trick on Lucien Georgelin. The French company, specializing in jams and compotes, was declared bankrupt on Thursday by the Agen commercial court. The Lot-et-Garonne group, which bears the name of its president and founder, has been experiencing significant financial difficulties for several months, trapped between debts and a lack of liquidity. Last Tuesday, the company declared bankruptcy.
The two entities of the group, Georgelin Céréales and La Confiserie, will be under observation by two judicial administrators from Toulouse for six months, AFP learned.
Lucien Georgelin is one of the essential brands in supermarkets. The second French producer of jams behind its competitor Andros, the family SME has also diversified into tomato sauces, spreads, breakfast cereals, foie gras and snack products. The group currently employs around 350 people at its factories in Virazeil and Villeneuve-sur-Lot, in the Lot-et-Garonne.
Covid-19 and rising costs
But, after having already gone through the health crisis that closed the restaurant market, the Gascon company was weakened by significant investments of 9 million euros to build a storage building, which it was forced to finance in the absence of having obtained a bank loan. , remember le figaro. In addition, the sharp increase in production costs dealt a further blow to the company’s foundations.
According the echoes, the company is looking for 3 to 4 million euros in fresh money, to be able to get out. To support a major supplier on their shelves, large retailers have given it cash advances or shortened its payment terms, or even financed promotional operations. Lucien Georgelin, still in charge of the group he leads with his brother Patrick, was also received at Bercy.
Source: BFM TV
