Le Coq Sportif Faces Uncertain Future as Insolvency Procedure Sparks Internal Rift

Le Coq Sportif, a future in suspense. The French rooster brand, official supplier of the Paris 2024 Olympic and Paralympic team, is staking its future this week at the economic activities court in Paris. The company, which has been undergoing bankruptcy proceedings since November , has received two rescue offers that reflect the tension between the protection of industrial employment and the commercial attractiveness of an iconic French brand but loss-making.

The company, 75% owned by the Swiss Airesis group, is dragging recurring losses despite sales growth at the start of 2024. In the first half of last year, it raised its turnover by 30% to €82 million, but remained in the red with losses of €18 million. For the full 2023 financial year, Le Coq Sportif turned over €121 million and lost €28 million, reflecting the deterioration of its margins despite its growing visibility thanks to the Olympic contract.

The brand’s notoriety in France remains well above its actual share of the global sports market. Its 300 employees, including those at the Romilly-sur-Seine workshop (near Troyes), represent a symbolic asset that has attracted the attention of public and private actors, including the French Ministry of Economy, anxious to preserve industrial activity and limit the cost of debts for local coffers.

The best-positioned bid comes from French-Swiss businessman Dan Mamane, known for reviving consumer businesses after having acquired Conforama Suisse and more recently the Ogier ski brand. Mamane is joined by Alexandre Fauvet, former CEO of Fusalp, and could be joined by Cédric Meston, head of Tupperware France. Although the financial details have not been disclosed, their plan would guarantee the maintenance of the workforce at the historic site and envisages taking over part of the debts, a factor that tips the balance in the direction of the bankruptcy administration.

Le Coq Sportif has received two offers to ensure its survival

According to sources close to the process, Mamane’s strength in restructuring loss-making operations and industrial stability in the Troyes region play in its favor. The court, which has delayed the decision several times, maintains July 4 as the key date to validate or not the proposal.

The second major bid comes from a consortium composed of Neopar, a French company specialized in restructuring; the U.S. group Iconix, owner of brands such as Lee Cooper or Umbro; businessman Xavier Niel; judoka and Olympic medalist Teddy Riner, as well as the Camuset family, founder of Le Coq Sportif and the current president of Airesis, Marc-Henri Beausire.

This block pledged to inject €60 million immediately, divided 51% by Neopar, 22.5% by Iconix and 26.5% by other investors. However, their plan was put on hold, according to the complaint, by the decision of the judicial administrators. In a five-page letter sent on June 26 to the president of the court and the Paris prosecutor’s office, their lawyers describe the proceedings as flawed and ask for the debates to be reopened, according to AFP news agency.

In its letter, the August Debouzy firm claims that its project was submitted in due time and form, but was deliberately weakened and de facto excluded from the analysis, in favor of Mamane’s offer, which they describe as “the preferred plan of the administrators” since the first weeks of the tender.

In the market, the French label is perceived as an iconic asset but in urgent need of modernizing its commercial network, optimizing manufacturing costs and diversifying geographies beyond France. To this end, access to international partners and investment capacity will be decisive, whether the court endorses Mamane or decides to relaunch the Niel and Riner consortium’s plan.

The court decision will be known, barring a last-minute twist, this Thursday. If the reopening of discussions is approved, the process could drag on for several more weeks, with new hearings to assess employment conditions and the impact on local finances. In the meantime, the 300 employees of Romilly-sur-Seine and the textile ecosystem of the Aube remain on edge over the future of one of the most beloved icons of French sport.