THE WHAT? The Alès Groupe has entered administration, having being hit hard by the effects of the COVID-19 pandemic, according to a report by WWD.com.
THE DETAILS The family-owned maker of Phyto and Lierac beauty products requested to enter administration at a Paris court earlier this month, which was given the go ahead three days later.
Taking to a statement, the group said, “Alès Groupe management will seek all solutions allowing, under the best conditions, to continue the business, maintain employment and settle liabilities.”
The group’s operational subsidiaries are not said to be involved.
THE WHY? The group has been in trouble for some time, with it citing in May that it had a cash balance of around 14.8 million euros and debt of approximately 96.8 million euros.
Significantly impacted by the coronavirus, the pandemic enforced a distribution freeze in almost all European countries as well as the U.S., with the company now in a six-month observation period.