MONTREAL (BRAIN) — Québec cycling brand Louis Garneau Sports Inc. has filed a notice of intention to file for creditor protection, with debts of CAN$32.7 million ($23.9 million), according to its public filing with Canadian authorities.
The company said it would temporarily lay off 66 employees at its headquarters in St-Augustin-de-Desmaures, Québec.
In a news release, founder and president Louis Garneau said the bankruptcy 36 months ago of two of its largest clients in Europe contributed to his brand's financial troubles.
“We are deeply saddened and sincerely sorry to have to temporarily lay off many of our loyal and long-standing employees. I want to thank all of them for their energy, devotion, and patience during this difficult time.," Garneau said in the release. "We have hit a headwind due to the extreme difficulties the industry is facing, combined with the challenges of the retail market in general. Our problems started 36 months ago when two of our larger international customers filed for bankruptcy, creating a significant strain on our cash flow.
“My hope and goals are to maintain the head office in Saint Augustin-de-Desmaures, employing as many employees as possible. Throughout all my years competing in cycling, I never gave up even after a crash on my bike; I carry the same mantra in business. With the support of my team and family, I will do everything in my power to pull through and bounce back. All my energy will be put into the restructuration in support of the employees and their families. I want to thank all the Canadians who have supported since the company began in my father’s garage in 1983," he said.
The release said the filing does not involve or affect the operations of Louis Garneau USA, Inc., Louis Garneau Mexico Inc. or Sugoi Global Inc.
"There is no impact (jobs, business activities) in the US or elsewhere," a spokesman told BRAIN on Wednesday.
Garneau bought the Sugoi and Sombrio brands from Dorel Sports in 2018.
According to local reports, Garneau closed a textile factory in Québec about five months ago, laying off about 50 employees.
