Bicycle wheel manufacturer Mavic has been placed into receivership, according to a report by the Agence France-Presse (AFP) on Thursday. French labor unions had demanded accountability from former parent company Salomon and major shareholder Amer Sports after the company was sold in 2018. [Gérard Meunier, general secretary of the Commission Sociale Economique (CSE), told AFP, "The Grenoble Commercial Court declared us in receivership on May 2 with a six-month observation period."

Mavic employs 250 people worldwide, 200 of whom are in France. The brand was founded in 1889 and has been a supplier to the Tour de France for 40 years, with its iconic yellow cars and bikes providing neutral service; in 2017, the company extended its contract with ASO until 2022.

According to regional news reports from France 3 (open in new tab), former parent company Salomon sold Mavic to California investment fund Regent LP last year. Prior to the sale, Salomon's main shareholder, Finnish group Amer Sports, removed Mavic from its 2018 accounts. Amer Sports was subsequently acquired by a Chinese group in March 2019.

"We heard that Amer Sports wanted to sell us and Regent LP wanted to buy us. Some of Regent came to Annecy in July 2019 and told us we were a sleeping gem and that they believed in Mavic. Since then, nothing - no investment, no reply," Meunier said.

France 3 reported that Mavic was in financial difficulties and entered mediation proceedings in December. A court administrator was then appointed to look into the details of the correspondence between Regent LP and Amer Sport.

"A few days ago, staff representatives learned that, contrary to what had been publicly announced, Salomon had not sold the business to Regent LP, but to a Delaware (US) based company called M Sport, which has no capital ties to Regent."

The court trustee is now looking into the terms under which Salomon and Amar Sports Group sold Mavic, as well as the details of M Sports and how it acquired Mavic.

"Our employees have been concerned for a long time. For years we were looking for an investment. What we need is a serious buyer who wants to stay in the Annecy basin," Meunier said.