According to reports from Les Echos and other media, a hearing was held on Monday, Dec. 19, 2022, at the Commercial Court in Grenoble with Go Sport management and representatives of the approximately 2,000 employees who had approached the court to investigate the financial situation of the sporting goods chain. Founded in 1978, Go Sport, which has been generating losses for years, had been acquired by Hermione People & Brands (HPB) in late 2021 for a symbolic price of €1 from the parent company of the Casino food retail group, the Rallye company, which is itself heavily in debt. The judges requested further information and will announce their decision on the court-ordered initiation of reorganization proceedings on Wednesday, Dec. 21, 2022.
The in-camera hearing was to determine that the company is not insolvent in the short term. Both parties presented conflicting independent expert opinions. Go Sport’s auditors and an independent expert hired by the elected representatives of the Central Social and Economic Committee (CSEC) presented a report on Monday concluding that Go Sport has been insolvent since October/November. HPB management countered at the hearing with another independent report, presented a statement that the company is not insolvent, and promised that it will return to positive cash flow in a very short time.
“The court considered that the situation is urgent and must be acted upon quickly,” said Go Sport’s CSEC lawyer, Maître Evelyn Bledniak, who claims that the management report was prepared on the basis of incomplete information since it was discontinued at the end of November.
According to Les Echos, staff representatives fear that Go Sport could suffer the fate of the ready-to-wear chain Camaïeu, which went into liquidation with its 2,100 employees at the end of September, a few months after its acquisition by HPB. CSEC deputies point to cash transfers estimated at €36.3 million that allegedly flowed from Go Sport’s cash flow to HPB. The HPB group, owned by Bordeaux investor Michel Ohayon, had indicated at the hearing its willingness to sell Go Sport if arbitration proceedings are opened. Go Sport’s GM Benoit Verdier had left the company earlier in December, as reported by SGI Europe.
