Costil to go into Chapter 11
Calabrese is now behind bars having reportedly sold Darius Favre, a small skin tannery at Graulhet in the South West of France at an inflated price through a series of shell companies. Calabrese bought the tannery for Eur1 million in 2000 when Darius Favre (a small 12-man set-up) was in liquidation. He then subsequently sold it to Costil-UNT for three times the price. Costil was already struggling having suffered serious flooding and the aftermath of foot and mouth that saw prices rise by up by 30% for cattle hides and 50% for calf hides. The tannery worked at a loss for several months and the employees were put on short time.
Founded and run for many years by the Costil family, Costil was acquired by Crédit Lyonnais in the mid-1990s before being bought by a group of Italian shareholders led by Calabrese in 2000. Despite its recent troubles, Costil remains one of France's most efficient tanneries. It has a water purification plant that complies with European standards and is thus equipped to carry out contract work for tanners whose equipment does not comply with European regulations. The commercial court is expected to file for Chapter 11-type bankruptcy protection and to encourage potential buyers to tender their offers.
Costil employs some 360 people in Pont-Audemer and Strasbourg. The tannery generated a turnover of Eur6 million in 2000.
