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Mavic goes into receivership

Peter Stuart
9 May 2020

Mavic placed in judicial redress by court as unions demand full accounts from former parent company Salomon

Wheel manufacturing giant Mavic has been placed in receivership by a Grenoble court according to reports from French national news sources, meaning the business will likely be in control of its creditors.

French wheel brand Mavic employs around 250 staff, and has long since been a prevalent wheel choice amongst high-end road bikes – with wheels such as the Ksyrium and Aksium series being amongst the best-selling in the UK.

Entering into receivership, slightly different to entering into administration, will mean that Mavic has been appointed a ‘receiver’ by the court, likely on behalf of creditors.

The court has granted six months for the judicial redress (redressement judiciaire) process, in which Mavic will be in the control of a receiver and will need to find a business plan going forward and potentially a new buyer for the company.

Mavic was recently sold to US investment company Regent LP, after former owner Amer sports (who were primary shareholders in Salomon) announced a strategy to sell the cycling part of the business.

The recent French reports suggest that Regent LP was not technically the owner. Instead union figures claimed Mavic had been sold to M Sports, a Delaware-based business which it is claimed is ‘sans lien capitalistique’ (without capital link) with Regent LP.

As a result of the lack of clarity over the sale, staff representation body the Social and Economic Committee is demanding accounts from Salomon to clarify the details surrounding the sale.

It is not clear what the immediate future for Mavic will be, although it appears that there is some optimism that a new buyer may be found.

‘Now we will need to find someone to take over who has a real vision and who wants to stay in the Annecy Basin,’ says Gérard Meunier, secretary of the Social Economic Committee.

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