While Condat's management hopes to find a buyer by the end of the year, it is initiating legal proceedings. On October 22, the Lardin-Saint-Lazare plant in the Dordogne will file an application with the Bordeaux Commercial Court for the opening of a court-ordered receivership. The aim is to facilitate the search for a buyer for the manufacturer of specialty papers for self-adhesive labels, while preserving jobs and business continuity.
Condat, a paper mill with a workforce of 220 "important assets"
"The 26-hectare site has a lot going for it, stresses management in a press release.
The Condat paper mill, which employs 220 people, has in fact benefited from 237 million euros of investment since 2019 largely from its parent company the Spanish Lecta group.
It was thus able to convert its production line from coated paper to specialty papers (glassine) and build a solid recovered fuel (SRF) boiler, which has been operational since February 2025 "delivers significant carbon and electricity cost savings" . Condat forecasts sales of 100 million euros by 2025.
Nine expressions of interest, three of them serious
According to a Condat spokeswoman, nine expressions of interest have been received to date, three of which are considered serious, including a Finnish investment bank specializing in stationery.
She points out that "the debts are too great to allow a takeover in the current state" - without, however, disclosing the amount - hence the request for the company to be placed in receivership for disposal.
Judicial reorganization would suspend payment of previous debts, ensure normal payment of salaries and subsequent invoices, and secure cash flow during the search for a buyer.
Above all, it would put the company in a better financial and legal position to implement these offers.
The procedure should also make it possible to broaden the search for buyers under the aegis of the court and in addition to the mandated investment bank.
Lecta's strategy undermined by external factors
Following an almost 70% drop in demand for coated paper in Europe between 2011 and 2024, Condat closed its coated paper production line at the end of 2023 to focus on glassine paper, a segment that is growing at an annual rate of 2%.
However, the installation of the CSR boiler, which was intended to reduce production costs and the plant's carbon footprint, failed to compensate in time for the rise in energy costs that occurred in 2022. And the final blow came last spring with the increase in US tariffs, which further saturated the European market.
Condat paper mill business to continue during proceedings
Pending the court's decision, which may come as early as Wednesday, on the opening of the procedure and the length of the observation period, Condat's business continues as normal.
The management team remains in place, strengthened by the appointment of Dominique Bernard as site manager. He is presented as a specialist in complex situations.
The company insists on maintaining the quality of service to its customers and protecting jobs during this period.
