Kaporal in Judicial Liquidation: 280 Layoffs and Immediate Cessation of Activity

The French ready-to-wear group Kaporal, known for its denim specialization, has been placed into judicial liquidation by the Marseille commercial court. This decision results in the immediate shutdown of operations and the layoff of 280 employees, the company announced in a statement to AFP on Saturday, March 29.

A Failed Takeover Attempt

Kaporal had initially requested liquidation with continued operations to facilitate a potential takeover. During a hearing on Thursday, the company defended this position before the Marseille commercial court. However, contrary to expectations, the ruling ordered the definitive cessation of operations and the associated layoffs.

Already in financial difficulty, the brand had filed for judicial reorganization in March 2023 due to unprecedented economic challenges. A recovery plan led by three of the company’s executives was approved in July of the same year. However, ongoing economic difficulties have made it impossible to sustain this effort, the management lamented.

A Struggling Textile Industry

This liquidation comes amid a challenging period for the French textile industry, which has been facing increasing competition and declining consumer demand for several years. Despite multiple restructuring attempts, Kaporal was unable to overcome these challenges, reflecting the major difficulties the sector is currently experiencing.