The Mavic cycling brand in Bankruptcy

As reported by the web cyclingnews, the maker of bicycle wheels Mavic was declared bankrupt, according to a report published by Agence France-Presse (AFP) on Thursday.

Mavic is a French company dedicated to the manufacture of bicycle parts founded by Charles Idoux and Lucien Chanel, with its headquarters near St. Etienne in France.

Until now, it offered helmets, footwear, clothing, for the various modalities of cycling and triathlon

The name Mavic is an acronym that stands for Manufacture d'Articles Vélocipédiques Idoux et Chanel

Bankrupt since May 2

French unions have demanded accountability from former parent company Salomon and its major shareholder Amer Sports after the company was sold in 2018.

"The Grenoble commercial court declared us bankrupt on May 2, with a six-month observation period," Gérard Meunier, secretary of the Social and Economic Committee (CSE), told AFP.

They have been granted 6 months, where they will be observed

According to the sentence, he has been granted 6 months of observation, where the company will continue its activity under the supervision of the court.

During this period, the organization of the company does not change and all the teams will remain operational as until now.

In Spain, work is 100%

Mavic's subsidiary in Spain, Mavic Iberia, is working normally in Barcelona (with covid-19 measurements), although all the planned collections will be launched at the end of the summer

The French brand has been a supplier to the Tour for 40 years

Mavic employs 250 people worldwide, including 200 in France.

The brand, created in 1889, has been one of the providers of the Tour de France for 40 years: its iconic yellow cars and bicycles offered neutral service to the platoon. In 2017, the company extended its contract with ASO until 2022.

Former parent company Salomon sold Mavic last year to a Californian investment fund called Regent LP, according to a regional report by France3.

Prior to the sale, Amer Sports, a Finnish group that is Salomon's main shareholder, withdrew Mavic from its 2018 accounts. Amer Sport was bought by a Chinese group in March 2019.

"Amer Sports wanted to sell us, we were later told that there was an agreement with Regent LP. The ruling people came to Annecy in July 2019 to tell us that we were a diamond in the rough, that they believed in Mavic. And since then, nothing, "said Meunier.

France 3 reported that Mavic has been in financial difficulties and was put into conciliation in December. A court administrator was subsequently appointed to learn the details of the exchange between Regent LP and Amer Sport.

"A few days ago, staff representatives learned that, contrary to what was publicly announced, Salomon had not sold his business to Regent LP but to a company called M Sports, based in Delaware (USA), No capital bond with Regent ».

The court administrator is now looking into the conditions under which Salomon and the Amer Sports group sold Mavic, along with details of M Sports and how it acquired Mavic.

“Employees have been concerned for a long time, years when we asked to raise our heads and make investments. There, now, we would have to find a buyer with a real project and who wants to stay in Annecy, "said Meunier.