Le Coq Sportif: A high-stakes battle to save the French icon
Credits: Courtesy of Le Coq Sportif The future of Le Coq Sportif hangs in the balance over the coming weeks. Placed in receivership since November 2024, the historic sportswear brand, official outfitter of the French delegation for the Paris 2024 Olympic Games, has attracted interest from two potential buyers. One, backed by the French government, appears best positioned to ensure a viable recovery, while the other favors a licensing and export strategy, reports AFP. The Grand Est region, a creditor of the company, has agreed to write off 50% of its debt to facilitate the acquisition. Government-Favored Bidder Emerges to Save Historic Site With approximately 300 employees in France and debt estimated between 60 and 70 million euros, Le Coq Sportif is at a critical juncture. According to a report by Franck Leroy, President of the Grand Est region, voted on last Friday, "only one of the candidates appears capable of submitting a recovery plan." This bidder has government support, guaranteeing the preservation of the Romilly-sur-Seine (Aube) site, the brand's historic birthplace. The other competing project, however, prioritizes an internationalization strategy focused on selling licenses abroad, without a clear commitment to maintaining jobs in France. This factor could weigh heavily in the final decision. Debt Forgiveness to Facilitate Recovery To facilitate the recovery, the Grand Est region has decided to cancel 50% of its claim against Le Coq Sportif, amounting to 1.2 million euros, while also scheduling the repayment of the remaining 50% over ten years. According to AFP, this gesture is a continuation of the regional support provided to the brand in 2021, when the outfitter received a zero-interest loan of 2.65 million euros over 11 years to modernize its Romilly-sur-Seine factory and increase production in anticipation of the 2024 Olympics. The company, which still owes 42 million euros to the French government in various loans, will also need to obtain the approval of its other creditors to finalize the takeover. The court-appointed administrator plans to consult them in April before submitting the final plan to the Paris Commercial Court. A Key Supplier for the Upcoming Olympic Games Despite its financial difficulties, Le Coq Sportif remains a strategic, even essential, player in French sport. Having outfitted the French delegation for the Paris 2024 Games, the brand has been selected to provide the official apparel for Olympic and Paralympic athletes until 2026. Among its major commitments is the supply of 60,000 garments for the Milan-Cortina Winter Games (February 6-22, 2026 for the Olympics and March 6-16 for the Paralympics). Strategic Silence from the Parent Company As pressure mounts regarding the future of Le Coq Sportif, the brand and its parent company, the Swiss holding company Airesis, remain tight-lipped. Contacted by several media outlets, including AFP, the company declined to comment on the current situation. The outcome is approaching, and the decision of the Paris Commercial Court will be decisive in sealing the fate of this iconic French sports brand. A choice that will pit industrial preservation against an internationalization strategy, with direct consequences for employment and the brand's identity. This article was translated to English using an AI tool. FashionUnited uses AI language tools to speed up translating (news) articles and proofread the translations to improve the end result. This saves our human journalists time they can spend doing research and writing original articles. Articles translated with the help of AI are checked and edited by a human desk editor prior to going online. If you have questions or comments about this process email us at info@fashionunited.com
The future of Le Coq Sportif hangs in the balance over the coming weeks. Placed in receivership since November 2024, the historic sportswear brand, official outfitter of the French delegation for the Paris 2024 Olympic Games, has attracted interest from two potential buyers. One, backed by the French government, appears best positioned to ensure a viable recovery, while the other favors a licensing and export strategy, reports AFP. The Grand Est region, a creditor of the company, has agreed to write off 50% of its debt to facilitate the acquisition.
Government-Favored Bidder Emerges to Save Historic Site
With approximately 300 employees in France and debt estimated between 60 and 70 million euros, Le Coq Sportif is at a critical juncture. According to a report by Franck Leroy, President of the Grand Est region, voted on last Friday, "only one of the candidates appears capable of submitting a recovery plan." This bidder has government support, guaranteeing the preservation of the Romilly-sur-Seine (Aube) site, the brand's historic birthplace.
The other competing project, however, prioritizes an internationalization strategy focused on selling licenses abroad, without a clear commitment to maintaining jobs in France. This factor could weigh heavily in the final decision.
Debt Forgiveness to Facilitate Recovery
To facilitate the recovery, the Grand Est region has decided to cancel 50% of its claim against Le Coq Sportif, amounting to 1.2 million euros, while also scheduling the repayment of the remaining 50% over ten years. According to AFP, this gesture is a continuation of the regional support provided to the brand in 2021, when the outfitter received a zero-interest loan of 2.65 million euros over 11 years to modernize its Romilly-sur-Seine factory and increase production in anticipation of the 2024 Olympics.
The company, which still owes 42 million euros to the French government in various loans, will also need to obtain the approval of its other creditors to finalize the takeover. The court-appointed administrator plans to consult them in April before submitting the final plan to the Paris Commercial Court.
A Key Supplier for the Upcoming Olympic Games
Despite its financial difficulties, Le Coq Sportif remains a strategic, even essential, player in French sport. Having outfitted the French delegation for the Paris 2024 Games, the brand has been selected to provide the official apparel for Olympic and Paralympic athletes until 2026. Among its major commitments is the supply of 60,000 garments for the Milan-Cortina Winter Games (February 6-22, 2026 for the Olympics and March 6-16 for the Paralympics).
Strategic Silence from the Parent Company
As pressure mounts regarding the future of Le Coq Sportif, the brand and its parent company, the Swiss holding company Airesis, remain tight-lipped. Contacted by several media outlets, including AFP, the company declined to comment on the current situation.
The outcome is approaching, and the decision of the Paris Commercial Court will be decisive in sealing the fate of this iconic French sports brand. A choice that will pit industrial preservation against an internationalization strategy, with direct consequences for employment and the brand's identity.
FashionUnited uses AI language tools to speed up translating (news) articles and proofread the translations to improve the end result. This saves our human journalists time they can spend doing research and writing original articles. Articles translated with the help of AI are checked and edited by a human desk editor prior to going online. If you have questions or comments about this process email us at info@fashionunited.com
This article was translated to English using an AI tool.
