French beauty packaging company PRP Creation has filed for a safeguard procedure, as the coronavirus pandemic coupled with rising raw material and energy prices has contributed to the company’s woes.
PRP Creation was placed under the protection of the Bourg-en-Bresse Commercial Court on July 6 as part of a safeguard procedure used in France to help struggling companies and avoid suspension of payments. Company management aims to “very quickly” present a recovery plan spreading out the company’s debt repayments.
PRP noted strong growth in 2017, which brought to light outdated machinery that needed to be replaced beginning in 2019. However, with the arrival of the coronavirus pandemic the following year the company experienced supply issues coupled with a sharp drop in activity resulting in a slowed down investment plan. While the company emerged from the crisis with the help of government initiatives and by pivoting to produce hand sanitizer flacons, the current increase in raw material and energy prices has strongly impacted its cash flow and Horizon 2025 business plan. Government aid requested since March 2022 has been refused.