Bruno Cercley, the former chief executive of the Rossignol Group who took over the company from Quiksilver late last year, has placed its workers on temporary layoffs for the months of January and February to reduce inventories and to prepare the establishment of simplified and more cost-effective processes.
In the same spirit, he is also eliminating a layer of management. Yves Barnoud, vice president of finance, is leaving the company at the end of February. He will be followed in March by Michel Vion, who has been acting as general manager in charge of R&D, marketing and racing after the departure of Bernard Liatti just after the closing of Rossignol’s takeover.
Liatti, a company veteran who had been interested in its buyout, was previously acting as vice president in charge of R&D, marketing and racing as well as sales. Under the new structure, another veteran of the group, François Chauvet, will take care of finances. Jacques Le Masson and Angelo Maina, who were working at a lower level in the hierarchy, will be responsible for R&D and racing, respectively. Two other company officials, Pascal Roux and Jean-Renaud Daniel, will report directly to Cercley to handle marketing, respectively for the Rossignol brand and for the other brands of the group: Dynastar, Lange and Kerma.
Cercley is following a careful and rigorous spending policy, but is waiting to see the results of the current autumn-winter selling season before setting new financial objectives. He is negotiating new financing terms with the banks, which had agreed already last September to support the group though factoring contracts that have been anticipating the clients’ payments.
Rossignol is going to return to a financial year starting in April and ending in March, like before its acquisition by Quiksilver. This means that it is going to record a big loss for the current shortened fiscal year, running from last November to March, as revenues will be minimal.