Parisot Industrie (P3G) placed in judicial reorganisation: 416 jobs in Vosges and Haute-Saône

A major setback has hit this company in eastern France.

It is grim economic news for the Vosges and Haute-Saône departments: Parisot Industrie, a subsidiary of the P3G group employing 416 staff, was placed into judicial reorganisation on Monday 8 June.

Impact on the Saint-Loup-sur-Semouse and Mattaincourt sites

The flat-pack furniture manufacturer employs 282 people at Saint-Loup-sur-Semouse (Haute-Saône) and 134 at Mattaincourt (Vosges).

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 it is the employees who are paying the price. Management could have acted sooner; the difficulties did not start yesterday, and other options, such as safeguard proceedings, could have been considered several months ago."

A company in difficulty

Although the company name may not be widely recognised, it supplies some of France’s biggest retail brands, including Conforama, But and Leroy Merlin. Unfortunately, the business recorded a loss of €6.5 million last year, and its turnover has fallen by 30% over the past two years.

Les Échos adds that staff representatives had triggered a formal alert procedure in May. A CGT union representative commented: “We are in a state of uncertainty. Judicial reorganisation is a good thing because it means the business continues, but we are waiting for more information”.

P3G under pressure after CBA Meubles is also placed into judicial reorganisation

Even so, the decision comes at a sensitive time for P3G, as another group subsidiary-flat-pack furniture company CBA Meubles (formerly Demeyere), which employs 363 staff-was also placed into judicial reorganisation last week.

Quoted by the business daily, Jean-Charles Parisot, president of the P3G Group, struck an upbeat note: “The procedures opened should give us the framework we need to move quickly, build credible continuation plans and preserve a French industrial base.”

According to other reports citing sources close to the case, the judicial reorganisation is intended to “create synergies”-and potentially merge the two companies-rather than sell them to another player.