The Grenoble Commercial Court on Thursday placed Groupe Go Sport, the parent company of Go Sport stores, into receivership after noting the condition of the sporting goods distributor’s payment cuts. “With a reasoned decision, the court (…) took note of the state of suspension of payments to Groupe Go Sport and opened bankruptcy proceedings.“, the Grenoble parquet floor announced in a press release.
He specified that “Go Sport France has not been declared insolvent, but its position will be affected by the position of its parent company.“. This decision was taken due to the fact that in November 2022 the Grenoble prosecutor’s office launched an investigation against “abuse of a public good“As for Groupe Go Sport, after that”the auditors handed over several revelations of criminal acts“.
With regard to bankruptcy proceedings, the prosecution explained that “two administrators and two legal representatives were appointed for an initial observation period of six months to manage the company for the benefit of employees and creditors, under the supervision of judges and prosecutors“.
Liability over 14 million euros
In its decision, the court noted that Groupe Go Sport had stopped payments, citing a report by Eight Advisory & Associés that established a liability of more than 14 million euros on 5 January.
At the end of December, after the first hearing, justice assigned the investigating judge the task of:make an accurate financial statementof the group and its subsidiary Go Sport France through their accounting firms and auditors.
The 2,160 employees of Go Sport in France were eagerly awaiting a decision a few weeks after the liquidation of Camaïeu, which was owned by the same group (Hermione, People & Brands), the distribution arm of Financière immobilière bordelaise (FIB), the investment fund Bordeaux businessman Michel Ohayon.
Union representatives and the Central Economic and Social Committee (CSEC) questioned the group’s financial condition, raising concerns in particular about a €36 million cash increase from Go Sport to its parent company, the HPB group.