French sporting apparel and equipment brand Le Coq Sportif said this week it is “looking for financing solutions” because of “significant financial pressure,” a few months after securing a state loan.

“Le Coq Sportif is currently under significant financial pressure, especially in terms of cash flow. October and November were particularly delicate, as they are every year, owing to seasonal product changes,” stated parent company Airesis in a press release. “The company has mandated an investment bank to assist it in finding suitable financing solutions,” added Airesis.

In H1 2024, Le Coq Sportif recorded revenue of €82 million, with the Paris Olympics approaching. But at the same time, the brand’s losses massively increased, growing from €10.5 million in H1 2023 to €18.2 million this year, a 73% rise. The deterioration was explained by Le Coq Sportif with “the major investments [carried out] in marketing and sales costs,” which had a significant impact on operations.

Le Coq Sportif outfitted the French Olympic delegation in Paris, but until the last moment there were doubts about its ability to deliver the kits. In May 2024, the company eventually secured a loan of €2.9 million from the Paris 2024 Organising Committee, of which €150,000 remained outstanding as of September 30, as well as a €12.5 million loan from the French State in July, through BPI France Assurance Export.

“Despite the current cash flow difficulties, commercial prospects remain positive, driven by the enthusiasm expected after the Paris 2024 Olympic Games, both in France and internationally,” said Airesis on Wednesday. 

Le Coq Sportif’s recent announcement came as the brand is embroiled in a dispute with the French Rugby Federation, which is claiming €5.3 million of arrears from its former kit supplier. At the beginning of October, Le Coq Sportif stated that it was “confident in the favourable outcome” of the dispute.

(with AFP)