Chief executive at troubled tannery steps down
11/05/2010
The tanning group filed for bankruptcy protection on March 23 and a week later a local court in Le Puy-en-Velay appointed administrators to prevent the company from going into liquidation while the company restructured.
On May 7, Mr Alfonsi announced that he was resigning because of the reluctance of the company’s shareholders to put together a refinancing package and because of what he called “constant internal resistance”.
Philippe Alfonsi led the company from 2003, focusing strongly on product innovation and on returning the company to profit. He succeeded in establishing a healthier financial position in 2007, but after the global economic downturn at the end of 2008 and in 2009, Les Tanneries Du Puy experienced a 40% drop in orders.
In announcing his resignatioin, the chief executive said: “I recommended recapitalisation to secure the investment necessary to bring the company up to date and keep it going. I also wanted to put in place a programme to increase productivity and the quality of our products to enable us to compete better at the luxury end of the market. These productivity gains would only have been possible with a profound change in the culture of the company.”
The company has 120 employees at the moment. The administrators have told the workers that there is no plan in place at the moment to lay people off and that the tannery will continue producing leather for clients while they, the administrators, search for a buyer for the business.
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