Sernam enters receivership as it courts two potential buyers
French parcel delivery company Sernam has been placed into receivership for a six-month period while it tries to find a buyer. The company that was the parcel delivery subsidiary of the French railway operator SNCF from 1970 until its management buyout in 2005 has been facing serious financial difficulties for several years.
It has been hit hard by the economic slowdown and the end of its partnership with SNCF and loss of its long-distance rail transport, Trains Cargo Express.
After several failed acquisition efforts, Sernam said today it was now in “advanced discussions” with two potential candidates. However, the company needs for an acquisition to be sewn up.
In a letter to customers, Sernam CEO Philippe Chevalier confirmed that his company had, at its own request, been placed into receivership by the Commercial Court of Nanterre (Hautes-de-Seine) today.
The court, which has arranged a hearing into the case for 27 March, has appointed an administrator and a legal representative to look into the company, which employs around 1,600 staff.
Protection
Chevalier explained that the receivership would protect Sernam, allowing for sorting, transport and delivery operations to continue in France and Europe, and that subcontractors would be paid as the company enters bankruptcy proceedings.
The Sernam CEO said: “Beyond the economic difficulties, Sernam is a healthy company that has developed standards of productivity that are among the best in the market, and in 2011 again demonstrated its ability to innovate.
“We confirm that this all keeps buyers – both French and foreign – interested in Sernam, including the two with whom discussions are already well advanced, and of course others may also come forward in the coming days.
“In this context, the bankruptcy and the observation period is a step that will help to facilitate and accelerate the recovery, and should be effective in the coming months,” said Chevalier in the letter to customers.
French media are suggesting a return to SNCF ownership could well be on the cards for Sernam, as part of its Geodis logistics division. The Caravelle Group has also been mentioned as a possible buyer for Sernam.
Investment fund Butler Capital Partmers has held a 52% stake in Sernam since 2006, but decided in November it wanted to pull out after failing to acquire another struggling mail and parcel carrier, Mory, which last year went to The Caravelle Group.
Sernam reported a loss of EUR 15m in 2010 on a EUR 300m turnover, 12 months after reporting a EUR 20.1m loss on EUR 329m sales.
