CHATTELLERAULT, France- On 30 November a French court forced bicycle component maker EGS to cease production, according a the French component manufacturer. At the same time, EGS announced that it was appealing to the court decision.
EGS was placed under the protection of French jurisdiction on 12 October. At that time plans for a recapitalization failed. EGS had until the beginning of November to find new capital and new investors. According to EGS, new investors were found. Nevertheless, the French component maker had to lay off 24 workers by mid-November, so that only 30 remained in service.
The decision made by the French court on 30 November is being appealed by EGS's lawyers. It will take a week to 10 days for the court to decide on the appeal. In the meantime EGS has been forced to stop production. (JO)