French parcels firm Sernam was today put into receivership for six months after declaringbankruptcy and is in advanced talks with two potential buyers.
This morning the loss-making firm was put under judicial administration by the Nanterrecommercial court at the company’s own request in order to gain time to find a buyer. Sernam saidthat the procedure would enable the company “to carry on its activities in a secure legalframework” and stressed it would continue to transport and deliver shipments in France and aboardas usual. All sub-contractors would be paid as normal.
Earlier this month unions had warned that the company was in serious financial problems, leaving3,000 jobs at risk. Representatives of the CGT, CFDT and FO unions held talks with senior Frenchtransport ministry officials and asked them to support efforts to find a new investor for thecompany.
CEO Philippe Chevalier told customers in a letter that the management and owner Butler CapitalPartners (BCP) had decided last November to sell the company after “several external growthprojects” did not succeed. This was a reference to BCP’s failed bid for Mory last year.
“Since this announcement, we have been actively looking for a buyer, have met potentialcandidates, and had advanced discussions with two of them already,” Chevalier disclosed. “Weconfirm that several buyers, French ones as well as international ones, are interested in Sernam,and among them the discussions are already very advanced with two. And of course, other potentialbuyers could show interest and declare their candidacy in the coming days,” he said.
French media cited Geodis chief Pierre Blayau as saying that the SNCF subsidiary would “makeproposals”. An acquisition would bring Sernam back into the SNCF group six years after its sell-offby the state-owned rail operator. Caravelle, owner of competitors Ducros Express and Mory, has alsobeen mentioned as a possible buyer.
BCP acquired a 52% stake in Sernam in 2006 after SNCF sold the heavily loss-making company tomanagement the previous year. It embarked on restructuring but has reportedly remained in the red,despite reducing its losses. It had an operating loss of €15 million on revenues of €300 million in2010 following a €20 million loss on sales of €329 million in 2009, according to French media.
Sernam’s financial position was impacted last year by two major events: the end of itscooperation with former owner SNCF and the termination of its ‘cargo express’ trains forlong-distance linehaul. “The investments needed for restructuring consecutive to these two eventswere strongly amplified by the effect of the crisis and have put us in a difficult financialposition and led to this court decision,” Chevalier explained.
But the parcels firm stressed it retained major competitive advantages, including its customerbase of 13,000 firms, which give it “real added-value”. The company, with 50 branches, offersnext-day express and deferred deliveries across France by road and rail transportation, and is amember of the Eurodis network, led by Austrian Post-owned trans-o-flex.
BCP’s decision to sell Sernam followed its failed bid for Mory Team earlier last year, whichcould have led to a Sernam-Mory merger if it had been successful. BCP had planned to merge the twonetworks and create ‘a new number two in the French parcels market’. However, Mory was taken overby Caravelle, which already owned Ducros Express (formerly DHL Express France).
