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ALÈS GROUPE ENTERS ADMINISTRATION PROCEEDINGS

July 17, 2020
July 17, 2020
Phyto Facebook

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.

DETAILS:

  • 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.
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