Paris (AFP)

The main press distributor in France, the Presstalis group, has filed for bankruptcy, against a backdrop of persistent disagreement over the rescue solutions between its major shareholders, the magazines and the daily newspapers, a procedure which does not, however, have any immediate consequences. on his activities.

The company declared Monday in cessation of payment with the Commercial Court of Paris, said Tuesday its management, confirming information from the Press Correspondence.

Delayed by the health crisis, this procedure was "inevitable" but will be "without immediate consequence" on the group's activities, as assured by its CEO Cédric Dugardin, in a message to its 900 employees consulted by AFP. Daily newspapers like magazines should therefore continue to be delivered to newsagents.

"Presstalis is in the grip of serious difficulties and is now unable to meet its financial commitments", underlined in his message Cédric Dugardin, a specialist in companies in difficulty, appointed in February at the head of Presstalis.

The company, which had benefited from yet another bailout two years ago, must again restructure, shattered by the crisis in the print media. "The unprecedented health crisis in our country and the reduction in volumes supplied by a certain number of publishers have accelerated the deterioration of the Group's financial situation very significantly," adds Cédric Dugardin.

- Magazines against daily newspapers -

The bankruptcy must allow "to accelerate the discussions by placing all the stakeholders facing a sense of urgency", underlines the leader.

Because the solution is in the hands of publishers, who are shareholders of the group via two cooperatives, one which brings together the daily newspapers and the other which represents the magazines.

However, for weeks, two plans have been facing each other, seemingly irreconcilable: Presstalis defends the maintenance of a single structure (which would continue to distribute both daily newspapers and the magazine press), an option supported by daily newspapers, while the cooperative of magazines and the MLP (Messageries lyonnaises de presse, competitor of Presstalis), offer a separation of magazines and daily newspapers.

Culture Minister Franck Riester said Thursday April 16 that he was working with Bercy on a global plan for the press, which would take into account the issue of Presstalis. He also assured to do "everything so that there is no break in the distribution of the press", promising to pay the newsagents the sums which Presstalis owes them.

The merchants, put in difficulty in recent weeks by the containment measures, should receive this payment between the end of April and the beginning of May, said Presstalis, for a total of 16.2 million euros.

For Daniel Panetto, president of Culture Presse, the organization of newsagents, this filing for bankruptcy avoids "a brutal halt which would be very harmful if not fatal for press merchants".

- "Social acceptability" -

The CGT du Livre (SGLCE-CGT), the majority union in the business, was surprised on Tuesday that this bankruptcy was decided this week, while the unions were negotiating with the management, and is worried about the sustainability of the jobs. A recovery plan adopted in 2018, to which the State contributed via a loan of 90 million euros over 5 years, had already led to the elimination of 230 positions, i.e. a quarter of the group's workforce at the time.

As it stands, the SGLCE-CGT favors the project pushed by the management of Presstalis, a unique cooperative, but stresses that "there are still many obstacles to overcome".

The daily newspaper cooperative said Tuesday that it wanted negotiations with union organizations to continue before collective proceedings opened.

If he also supports the formula of a single cooperative, Louis Dreyfus, director general of the Le Monde group and president of the Daily Cooperative, wishes to obtain details on the "financing" and "social acceptability" of the formula of MLP.

In addition, the editors were to decide before Tuesday evening on a financing plan which would avoid them the losses related to the filing for bankruptcy, evaluated around 120 million euros. The conciliator Hélène Bourbouloux proposed that the State finance half of this sum and lend the other half to publishers, in exchange for their investment in the future distribution system.

© 2020 AFP