French manufacturer, Duralex, was placed in receivership on Wednesday 24 April, 2024.
The commercial court of the French city of Orleans called for a six-month observation period, aimed at finding a buyer and stabilising the company. Roland Lescure, minister delegate for industry, expressed the French state’s commitment to supporting Duralex and several strategies are being considered to facilitate the recovery.
A statement from the company said:
A year ago, NDI (New Duralex International), the operator of the Duralex brand, was able to overcome the challenges of the energy crisis and the repercussions of the war in Ukraine, thanks to the joint commitment of its employees, the support of its shareholder, the State and its financial partners.
However, in 2023 new challenges emerged due to inflation, a shrinking consumer environment and heightened competition. Duralex commercial performance was severely impacted. Despite the operational efforts, and the continuous investments, the losses could not be contained and the horizon of return to a more favourable situation, darkened.
At the same time, NDI was confronted with a decision by the Orléans Administrative Court concerning the rights to pollute of the former owner of Duralex. The judgment handed down in mid-March considered that NDI, a company taking over an operation benefiting from greenhouse gas (GHG) emission authorizations, was liable for the allowances owed by the former operator, even after its judicial liquidation. This decision seriously compromises NDI’s financial health and its ability to maintain its operations in a sustainable manner. The company has announced its intention to appeal.
The management of NDI had no choice but to act accordingly in order to preserve the interests of the company and therefore made the decision to place NDI under the protection of the Commercial Court of Orléans on which it depends, to apply for the opening of a receivership for its benefit. The objective, in this context adapted to the situation, is to find a buyer for NDI. An Administrator and a judicial agent should be appointed by the court to assist the company during the observation period that should open. Only NDI is concerned by the process that should start. Pyrex – International Cookware, is not affected and is continuing as usual.
