Cycleurope Seeks Partner for Machecoul Plant
MACHECOUL, France – Cycleurope AB CEO Tony Grimaldi (photo) is looking for a partner in order to continue the operations of the company’s plant in Machecoul, France. In the context of a receivership of its Machecoul operations, he seeks that partner with the help of the commercial court.
Yesterday evening Tony Grimaldi told Bike Europe that about 250 jobs are involved at Cycleurope’s Machecoul plant which is primarily focused on bike sales to the mass market. That business deteriorated seriously over the past years.
Margins have been strongly hurt
In a statement the company says: “Over the past years, the Cycleurope group has done everything to restore the competitiveness of the site with a series of re-launch plans and significant investments. Today, the retail mass market conditions, with its focus on big retail chains, have seriously deteriorated. The margins have been strongly hurt over the past years under the effect of the increasing competition. Since the beginning of 2010, market conditions for retail mass markets bicycles have been hit both in France and internationally.”
Slowdown in sales is getting worse
The Cycleurope statement continues: “The slowdown in bicycle sales for Machecoul is getting worse, with a 13% decrease from 2011 to 2012 compared to a 9.5% decrease from 2010 to 2011. Over the past 4 years, the decrease in Key Accounts sales volume has reached 36%.”
Tony Grimaldi, who is also Chairman of Cycleurope France, said: “Cycleurope wishes to reach a solution to find a partner for the retail mass market business in order to maintain production in France in the future. The group will also pursue its well positioned activity with branded bicycles produced in France.”