Mobilized to manufacture masks, a French company on the verge of bankruptcy

Jacques Gaimard /Pixabay It is an ubiquitous situation that a company in La Séguinière, near Cholet, in Maine-et-Loire is going through. The company mobilized during the first confinement to produce fabric masks, which were sorely lacking in France at the time. A decision which, as reported by France 3 , now makes it ineligible for the solidarity fund set up by the State, while the company, dependent on the events sector, has lost half of its turnover since the beginning of the pandemic.Specialized in the flocking of clothing, the company had adapted its activity to meet the

needs in masks. But the sale of these accessories – 86.000 in total to local businesses and pharmacies, all with almost no profit – artificially inflated its turnover preventing it from today to receive state aid, while it risks bankruptcy. Worse, she ends up with 25. unsold masks, the government having subsequently favored disposable masks.

“We suffer, we go into debt, we lay off” “We realize that it has been absolutely useless and that it remains on our hands and that decisions change so much from day to day. Result : we have stocks on our hands and we worked for nothing”, deplores an employee with France 3. On the boss’s side, the situation is alarming: he had to lay off 22 of its 30 employees to try to survive. Thus, since the first confinement, “we suffer, we go into debt, we lay off”, he explains.

“We made a significant turnover in 8271, 500. euros, but without earning a penny on it, explains the boss. On the other hand, it is what penalizes us and which got us out of the solidarity fund That’s why I got zero help, whereas I could have had 350. euros”. An “infuriating” situation for the entrepreneur who “checked the wrong box”. From now on, he could be forced to resell his business…

Receive our latest news Each morning , information to remember on the financial markets.