Arche goes into administration
The French footwear manufacturer has gone into administration due to a complex situation in the domestic and international markets. While the process runs its course, the company will continue to operate
Arche is experiencing a cash flow problem that is preventing it from meeting its most pressing deadlines. According to management, the company is experiencing a downturn in business linked to the French economy and the decline in the clothing trade, as well as a decline in sales in certain foreign markets (74% of Arche’s sales are made outside France, in 36 countries). The manufacturer is also facing rising energy and raw material costs.
The decision to go into administration is expected to give the company some protection from creditors, while it continues to operate. “This receivership is a way of continuing to produce with greater peace of mind. Our orders are increasing, which means we need more raw materials. Annual purchases - notably of European cowhides and natural rubber soles - amount to 4 million euros, but current shoe production will not be paid for until October or December 2024”, explained Hélaine to Le Monde.
Meanwhile, Arche ensured the company’s commitment to its customers and employees remains strong. Founded in 1968, the company employs over 100 people at its site in Château-Renault, near Tours.
Image Credits: pick-a-shoe.com
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