The oldest French arms company, Verney-Carron, which signed a contract worth €36 million in November 2023 to supply weapons to Ukraine, has gone bankrupt, according to BFM TV, Report informs via Izvestia.
“The arms manufacturer Verney-Carron from St. Etienne announced on Tuesday its insolvency and filed a petition for bankruptcy proceedings against it, while negotiating with a potential buyer,” the publication said.
It is specified that the company has been incurring huge losses for several years. Thus, in 2023, their losses amounted to €4.54 million with a turnover of €5.45 million.
On February 12, the Saint-Etienne Commercial Tribunal will meet on this issue. Cybergun, which has been a shareholder in Verney-Carron since 2022, has invested €12 million in it.
An official statement from Cybergun reveals that a search has been initiated for an industrial partner to sponsor the arms company for several years. The document states that negotiations are already underway with a major player in the small arms industry for this purpose. Its identity is yet to be disclosed.
