5aSec Exits Receivership Procedure

According to Entretien Textile, the 5àsec group exit from the receivership procedure came into effect with a stimulus plan already developed during the procedure. On April 28, 2020, at the beginning of the pandemic, the Commercial Court of Paris opened  a receivership procedure for 5àsec. The observation period ran for a period of six months, until October 28, 2020.

Benjamin Lacoste the group’s General Manager for France told Entretien Textile that in a complicated context, the company entered the procedure with an established recovery plan, originally supposed to be formalized on March 18, 2020. Two and a half months after Lacoste took the office, the company had to face the first lockdown. The group made the choice to close all the stores in the network, because there were no customers. Two months of closure with no turnover had a huge impact on cash flow. The signature fell through, but the project and the business plan remained relevant. Finally, the receivership made it possible to re-establish financial balances bearable by the company. “The challenge for 5àsec today is to successfully resume activity and pursue the recovery plan”, concluded Benjamin Lacoste.

This can bring a positive signal for the dry cleaning sector which, in the current pandemic context, is suffering from the effects of successive lockdowns and from the fact that the majority of the people are working from home.