Egypt-based sanitary ware and ceramics producer Lecico is planning to sell all its operations in France including Lecico France and its subsidiaries Sarreguemines Batiment, a fine clay products manufacturer, and distribution channel Lecico Distribution.
Given the continued difficulties in France and the relative uncertainty of the political situation in Egypt, which has restricted the ability of Lecico to fund the French operations with the necessary foreign currencies, Lecico is not in a position to support these operations any longer, it said in a statement.
Lecico acquired Sarreguemines Batiment out of a bankruptcy procedure in 2006. Restructurings helped bring the manufacturers costs down, but it continued to lose money amid challenging market conditions.
Negotiations with potential buyers of the French businesses, which is planned to take place under French insolvency procedures that allow more room for discussion with creditors, have been ongoing for the past few months.
The sale will likely lead to a write-off of around E£100m ($14.51m) and around E£20m in net profit savings, according to Lecico.