This closure is part of a profound transformation of a sector in decline. Milee, ex-Adrexo, the French advertising distribution giant, has closed its doors for good. This liquidation takes place in a difficult economic context for the entire advertising print sector. Faced with an unfavorable economic climate, marked by the rise of digital technology and falling print volumes, the company was unable to find a buyer. The definitive closure of Milee, ex-Adrexo, marks a turning point for the advertising distribution sector. In just one year, the company saw its workforce shrink from 10,000 (or 3,500 full-time equivalents) to zero.
Lower distribution volumes.
The print advertising distribution sector has been experiencing a structural decline in demand for several years. With the rise of digital, advertisers are increasingly turning to digital channels, which are more cost-effective and offer a more precise reach. Between 2019 and 2023, the volume of printed advertising fell by almost half, from 10.4 to 5.7 billion copies distributed. This transition has accelerated with the effects of the 2020 health crisis and the mass adoption of digital technologies, directly affecting businesses once dependent on physical distribution.
Representing 348 million euros in sales and 2% of media revenues in 2023 (source BUMP), unaddressed printed advertising remains a particularly effective lever for local campaigns, generating in-store traffic. According to a Balmétrie study conducted by IPSOS, 68% of French people have consulted at least one printed advertisement in the last eight days. This medium enables 85% of readers to access information on promotions and sales, and encourages 63% to go directly to the store.
The legislative framework: insurmountable obstacles
Milee's closure is largely the result of political and regulatory decisions that have weakened the printed advertising distribution sector. Among these factors, the Citeo tax, which stems from the "polluter pays" principle, has weighed particularly heavily on advertisers. In France, companies that use printed advertising must pay a contribution to finance recycling and waste management. This Extended Producer Responsibility (EPR), while justified by ecological concerns, has added a financial burden to an industry already in crisis.
The environmental impact of advertising leaflet distribution is coming under increasing criticism. Initiatives such as the Citizens' Climate Convention, which voted for the "Oui Pub" scheme limiting unsolicited distribution, are currently being tested in several regions. These measures are aimed at reducing the waste generated by printed matter, but they have also considerably reduced the volume of activity. Changes in environmental regulations pose a major challenge to an already fragile business model. Read our articles on Oui-Pub.
Inflation, raw material costs and the carrier crisis.
Milee's liquidation cannot be dissociated from the global economic context. Since 2022, the sector has been hit by rising costs, particularly for raw materials such as paper, the price of which has risen sharply due to the energy crisis and geopolitical tensions. At the same time, inflation weighed on the margins of distribution companies, while transport costs continued to rise, further weakening logistics providers. Milee, already in difficulty, was unable to compensate for these increases with a sufficient adaptation strategy.
Management that has failed to adapt to new realities.
Despite a challenged business model, Milee failed to take the necessary steps to anticipate market transformation. Lack of investment in digital tools and business diversification precipitated the company's downfall. Despite the difficulties, the company continued to rely on physical distribution, without really integrating the innovations needed to reposition itself in the face of rapidly changing demand. This lack of a strategy for adapting to new economic realities was a key factor in the liquidation.
The loss of key customers and an intense competitive environment.
Another factor precipitating Milee's liquidation was the loss of major customers. Retailers such as Cora and E. Leclerc, which accounted for a significant proportion of its sales, stopped using its services at the beginning of 2024. This hemorrhaging of customers only exacerbated the difficulties of the company, which was already facing competition from La Poste via its subsidiary Mediaposte. With increased competition in a shrinking sector, margins were eroded, leaving little room for a turnaround.
10,000 employees made redundant, with no alternative solution.
Milee's liquidation is one of the biggest job losses in France since the 1980s. The company, which has been in receivership since May 2024, has not found a viable buyer, leaving a further 5,000 employees jobless in September 2024. The Marseille Commercial Court ruled that no takeover solution was economically viable, thus definitively condemning the company.
Milee employed a large number of precarious workers, including a significant proportion of pensioners and part-time employees, under difficult working conditions: long distances to be covered on foot or by car, pay at the minimum hourly wage, and minimal travel expenses. These conditions contributed to the instability of the employees, accentuating their vulnerability to sudden company closures.
A takeover bid deemed unviable.
The consortium formed by Diffusion Plus, Paragon and Riccobono had attempted to save Milee by submitting a takeover bid. The three groups, active in printing and routing, wanted to prevent La Poste, via its subsidiary Mediaposte, from becoming a monopoly in the advertising distribution market. Their plan called for a partial takeover of Milee's activities, with territory coverage initially reduced from 60% to 50%, and the gradual reopening of 60 branches. Up to 2,200 employees could have been re-employed, making this project one of the largest takeovers in the sector in France. However, despite the ambitious nature of the offer, the commercial court ruled that it lacked financial viability.
It would be illusory to lament the closure of a company when all the measures taken contributed to rendering its business model obsolete. It wasn't just management errors that led to Milee's liquidation, but political and regulatory choices that shaped its inevitable decline. These decisions send out an unequivocal signal: companies must adapt to new economic and ecological requirements, or risk extinction.
