Sporting goods retailer Go Sport has been placed into receivership by the commercial court of Grenoble. The decision was made after concerns were raised about the company’s financial state by its employees and auditors. This is not the first time a chain owned by the HPB group has faced this situation, as Camaïeu suffered a similar fate in 2022. The court determined that Go Sport had reached a point where it was unable to meet its financial obligations, leading to the initiation of a judicial recovery procedure.

The parent company of Go Sport, which is currently under investigation for the abuse of corporate assets, will also have an impact on the situation of Go Sport France. An observation period of six months will now take place, during which administrators and legal representatives will be appointed to manage the company in the best interests of the employees and creditors. Additionally, the court has confirmed the opening of a preliminary investigation into the misuse of corporate assets. Suspicious financial transactions, including a 36 million euro transfer to the parent company, have been identified since November 2022.

Prior to this development, Go Sport was led by Patrick Puy, who previously restructured the Vivarte group. The company has a workforce of 2,160 employees and a network of 223 stores, including Go Sport, Endurance Shop, and Bike+. It recently acquired Gap France as well. Despite claims from the HPB group that Go Sport was a thriving and growing business, the court-ordered reorganization may potentially lead to the sale of the company.

The procedure allows for calls for tenders, so the next steps for Go Sport remain uncertain. However, the management has hinted at the possibility of a sale, which is now a viable option. There is hope that this reorganization will result in a return to profitability in 2023 after seventeen years of losses.

Useful Links:
Reuters Article: Go Sport placed into receivership
Liberation Article: Go Sport’s dark hours