back on the four years that led to the fiasco

The Commercial Court of Rouen has just pronounced the judicial liquidation of Industrial Slaughterhouses of the Channel (AIM). The 235 employees of the company will have to be fired. A terrible outcome that punctuates four very difficult years for the slaughterhouse. Story

The company will not survive any longer. This Wednesday, July 4, the Commercial Court of Rouen was to decide on the viability of the offer for the takeover of AIM, the abattoir based in Sainte-Cécile (Channel). The buyers included the retention of 184 positions out of the 237 existing. Judges' verdict: the offer does not offer the necessary guarantees to ensure the long-term viability of the company. And since no other buyer was in the running, the court decided to place the company in liquidation. AIM, which was the last pig slaughterhouse in the region, will have to fire its 237 employees.

This painful epilogue comes to an end to several years extremely complicated for the slaughterhouse. By the end of 2013, AIM already had to sell its buildings to a consortium of public and private investors for 2 million euros … before releasing these same premises. The stated purpose of this operation is to relieve the cash flow of the slaughterhouse in the short term. Despite this, and only a year after the sale of the premises, a new cash flow problem is striking AIM. The company is not able to pay the wages of December 2014 … On the eve of Christmas, she decides to deposit the first time the balance sheet and pays his employees only a small portion of their earnings. As a sign of support, the Department will offer a compensation of 500 € to all the workers.

A judicial recovery in the midst of the pig crisis

The impossibility for the company to completely pay its employees during the Christmas period will set fire to the powders. At the beginning of 2015, nearly 350 employees and union representatives demonstrate to demand the resignation of AIM executives. At the same time, the filing of a bankruptcy results in a strong decision of the Commercial Court of Coutances: AIM is placed in receivership. The company's lawyer then declares: "The financial and economic situation of the company is disastrous …" The court gives the company only six months to reverse the situation.

In parallel , pig farmers are facing a serious crisis. Brittany, the leading pork region with 3,000 farmers, is particularly affected. "I have never seen such a calamitous start to the year" even go so far as to declare the president of the Regional Piggy Committee of Brittany. This crisis, caused in particular by the Russian embargo, hit AIM by ricochet who then cut 40% of all Norman pigs, or 750 000 animals.

A solid buyer who throws in the towel at the last moment

Placed in receivership, the company then sees several projects of recovery to be proposed to him. To the chagrin of the employees, the various projects each provide for mbadive job cuts. More than half of the employees could therefore be fired if one of these buyers won the bet. Over the weeks, a candidate stands out from the others by presenting the most serious guarantees. In March 2015, while an agreement is about to be found, the candidate in question suddenly decides to abandon the negotiations. "This recovery is too random and too risky for the future" he will justify. It is a new blow for the employees …

Finally, it is the employees themselves who decide to carry a project of recovery. Assisted by the Department, the Region and the State, they manage to set up a simplified joint stock company (SAS) which will eventually receive the approval of the Coutances commercial court. Thanks to this project of recovery, more than 200 employees are maintained on the 357 that welcomed the slaughterhouse before the setting in receivership.

The company manages gently to go up the slope

The problems are not however ended for the company … Indeed, while the Minister of Economy had committed to release 2.5 million euros as part of the recovery by employees, the state will review its copy and offer a loan with adjustable rate. "This state loan is not an aid regret the new president of the SAS. But we can not help but accept this poisoned gift. Otherwise, we will not be able to continue … "

Despite the difficulties, AIM gradually manages to climb the slope. At the beginning of 2016, the company slaughters nearly 5,000 pigs a week, bringing it closer to its breakeven point. The turnover is constantly increasing, and a strong export strategy is deployed. The Philippines, Africa and especially China are becoming important new markets. "Export accounts for almost a third of turnover" then rejoices internally.

A debt too heavy to carry

For more than two years, Sainte-Cécile slaughterhouse will manage to keep its head out of the water. But a new blow will befall the company in March 2018. In a statement, the Urssaf announced that it refuses to extend the many payment terms it has already granted "because current badessments are not settled ". AIM must hastily pay a debt that weighs nearly 3 million euros … A requirement too heavy for a company that has just recovered from its financial difficulties. The slaughterhouse is obliged to resubmit the balance sheet. Consecutively, the commercial court of Rouen decides to place AIM in receivership during six months.

At the end of this process, two recovery projects emerge but only one will be retained by the lawyer of AIM. The latter is carried by five Côtes-d'Armor pig farmers who promise to invest at least three million euros to recapitalize the company in difficulty. The Commercial Court of Rouen that badyzed Wednesday, July 4 the viability of the project was not convinced … He rejected the proposal of Breton breeders and ordered the liquidation of AIM. The slaughterhouse will close its doors permanently next Saturday, and the 235 employees it employs will be unemployed …