Parisot Industrie: 416 employees placed into judicial reorganisation

A severe setback for this eastern French company.

This is particularly bad economic news for the Vosges and Haute-Saône departments. Parisot Industrie, a P3G Group subsidiary employing 416 people, was placed into judicial reorganisation on Monday 8 June. The flat-pack furniture manufacturer has 282 employees at its Saint-Loup-sur-Semouse site in Haute-Saône and 134 at Mattaincourt in the Vosges.

Quoted by BFM, the lawyer representing staff 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 extremely difficult. There is virtually no cash left, and employees are bearing the consequences. Management could have acted sooner: these problems did not begin yesterday, and other options, such as safeguard proceedings, could have been considered several months ago.”

A company facing serious difficulties

Although the company name may not be widely recognised, it supplies several leading French retailers, including Conforama, But and Leroy Merlin. Unfortunately, the business recorded a €6.5 million loss last year, while its turnover has fallen by 30% over the past two years.

Les Échos reports that employee representatives triggered an alert procedure last May. A CGT representative said: “We are facing uncertainty. Judicial reorganisation is a positive step because it means operations can continue, but we are waiting for more information.”

Parisot Industrie and P3G Group's other subsidiary

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

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

According to colleagues citing sources close to the case, the judicial reorganisation could be intended to “create synergies”, or even merge the two businesses, rather than sell them to another operator.