Facing severe liquidity issues brought on by the coronavirus shutdown, Alès Groupe filed for administration in Paris’ commercial court.
WHO: Hair stylist Patrick Alès founded Laboratoires Phytosolba, a botanical haircare brand formulated with plants, in 1969. Today the Alès Groupe is the French beauty company with Phyto, Lierac, Jowaé, and Laboratoire Ducastel in its portfolio.
WHY: Alès said its activity has been seriously impacted by the COVID-19 crisis that resulted in a distribution freeze in almost all European countries, followed by the US.
IN THEIR OWN WORDS: “Alès Groupe management will seek all solutions allowing, under the best conditions, to continue the business, maintain employment and settle liabilities,” the company said in a statement, adding it would be open to finding new investors selling outright.
- In a statement, the family-owned group said on July 6 it requested to enter administration in Paris’ commercial court, which approved the measure three days later. Alès Groupe’s operational subsidiaries are not involved.
- The group is now in a six-month observation period, which began on July 9.
- Alès Groupe’s stock will not resume trading on the Euronext Growth market, where it was suspended on June 29, until further notice.
- The group’s sales last year gained 2.7 percent on a like-for-like basis to 208.6 million euros. Meanwhile, Alès’ profits were down 39.1 million euros in 2019, versus a decline of 15.4 million euros in 2018.
- Last month, when Alès announced its financial results for 2019, the company had a cash balance of about $16.7 million and debt of nearly $110 million at current exchange rates.
- In December 2019 the business announced Patrick Puy would replace Frédéric Poux after he resigned.
- In July of 2019 Alès Groupe took on a new minority shareholder in Co-Capital, a manufacturer and distributor of medicines and cosmetics.
- In October 2018 Alès Groupe sold Parfums Caron, which it had owned since 1998, to Luxembourg-based Cattleya Finance S.A. for 29.9 million euros.
- The prior year, in October, Alès Groupe sold the storied French fragrance house Parfums Caron to Cattleya Finance.