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Rigida France in Financial Trouble

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BARNEVELD, Netherlands (October 8) - The Rigida rim factory in Noyons, France, is in financial trouble, and has got a 'cessation de payement', a status slightly different from suspension of payment, but nevertheless alarming. "That's exactly what it is," Rigida Group President J. Pekelharing says, "with sales and production of bicycles in France so far down as at this moment, it was inevitable to sink beyond the break-even point. As you know, with our cost pattern of 70% prime materials and the rest for production, distribution and profits, the calculation when you get in trouble is easy to make. It's a real threat not only for us but for the whole supplier industry. To be true, it is not only in France but all over Europe and the USA that sales are down and production is following. Some manufacturers say they brought their production down with 15-25%, but others work only one or two days a week- their orders on our desk show it. We are going to solve these troubles in France on short term, even when the law permits us a really long period of 'cessation'. It will mean a substantial reorganization; all possible efficiency measures have already been taken." (OB)

by Bike Europe last update:21 Mar 2006

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