"Social crises 2018, 2019, covid, then containment 1 and 2... Or how a company that's been around for 17 years ends up on the brink... in less than two years." Here is the sad report of Virginie Blanc, alias Sergeant Vic, founder and director of Sergeant Paper. But Sergeant Vic doesn't give up and goes to the front. She launches a big call for help to save her company in Toulouse which has suffered a series of unfortunate events.
With a clientele mainly made up of shopkeepers and coming from the entertainment world, the company had been posting a stable turnover for several years (between 1.2 and 1.3 million euros) and had decided to move up a gear by relocating its production workshop from 600 to 2,000 m 2 .
First red balance sheet in 17 years
Inaugurated in October 2018, the workshop was immediately confronted with a sharp drop in activity linked to the numerous social events: a third of its clientele is made up of shopkeepers who have lowered the curtain during this crisis. For four months, the company's turnover was 30% lower than forecast, pushing its annual balance sheet into the red (end 2019) at -188,000 euros.
"Those few months were enough to make us go negative, explains Sergeant Vic . I remember it like it was yesterday: We'd just moved and we had no cash at all." Sergeant Papers then closes one of three agencies and fires one person.
Coronavirus epidemic: 60% reduction in sales and major restructuring
Barely a year later, the coronavirus epidemic came to a new halt. Shows and other cultural events are cancelled, and by the same token 60% of its clientele disappears.
"March 2020, heavily impacted by the covid crisis, we have no choice but to "downsize" and part with our main shop."
With a negative financial result in the previous balance sheet, the company has no access to State aid, despite having a turnover of barely EUR 800?000. The printing and finishing machines are sold, the workshop is emptied and 4 people are laid off. A heartbreak for Sergent Vic.
"Concretely, now, we no longer manufacture. However, I have kept a few machines - a folding machine, a punching machine and a typewriter - in the hope of being able to start up again one day. And three fellow printers are kindly keeping these machines for us."
"Once the company was restructured, the break-even point was almost halved, we were back in the saddle again, still fragile (because we were in debt), but with better prospects, since we needed much less turnover to hold on to (approx. 600?000 euros, editor's note). "
Second containment, new shutdown
In September, Sergeant Papers achieves the monthly figure to cover these new operating costs. But in November, another blow: containment number two. "The majority of our clients again is at a standstill..."
A glimmer of hope is met with the arrival of a buyer. But in the end the operation does not take place. "I was losing everything, but this buyer kept the employees, the company's spirit... We really believed in it until the last moment."
"If we don't come up with the money, it's bankruptcy in a few weeks."
"Today, the simple fact is, if we don't get money as soon as possible, we'll be out of business in a few weeks."
Without any other solution, she launches an online jackpot on November 15. "We've never asked for help, we've always done it on our own, and usually we're the ones who bring help to others, since we support a lot of causes and cultural and other events through our activity."
Eight days later, almost 8500 euros were collected. "I'm really touched by this help movement. I'm also getting a lot of messages of support. Our situation has surprised a lot of people because we've been here for 17 years, it's like a shock to them."
Hold until recovery
With 50?000 euros, Sergeant Papers will borrow 50?000 euros. "We will only be able to pay off a small amount of debt, but it will keep us going until better days come. (...) It will take longer, but it is possible." If the company manages to reach 100?000 euros, it will borrow 100?000 euros and will be able to settle almost all its debts.
"In fact, whatever amount we get, no matter how small, it will keep us going a little longer. We've got to hold out until we get back on our feet."
