French courier Mory Ducros declares bankruptcy

22nd November 2013, Comments 0 comments

France's second-biggest courier firm Mory Ducros filed for bankruptcy on Friday, putting its 5,000 employees at risk.

The move, announced at an emergency board meeting, is the biggest bankruptcy case in France since 2001 when household goods maker Moulinex, which had some 5,500 workers, closed shop.

The CFDT, the dominant trade union in Mory Ducros, had raised the alarm on Wednesday, saying it feared 2,000 to 3,000 jobs would be lost because of the company's financial problems.

Created a year ago with the merger of two transport firms Mory and Ducros, the company lost 79.5 million euros ($107 million) in 16 months until the end of December last year, according to court papers cited by Le Monde newspaper. Its turnover was 765.5 million euros.

It is the biggest bankruptcy case in France since President Francois Hollande took power in May 2012.

Hollande's Socialist government has been struggling to contain lay-offs in a morose economic climate, marked by record unemployment and high production costs.


© 2013 AFP

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