dated monday 13 April
Massive cash bail-out for Dynastar
Sallanches based Dynastar is to receive a massive cash injection of € 38 million from its owners, Rossignol. A statement from the board of directors claims that Dynastar is losing over € 1 million a week. Despite a good ski season in Europe Rossignol group has been the victim of strategic decisions compounded by the credit crunch.
Figures from the SnowSports Industries America (SIA) say that sales of ski and snowboard equipment, clothing and accesories in February 2009 had declined 16% year on year in the US market. Commentators note that the industry has held up better than other sectors but that winter sports enthusiasts are no longer ready to pay high prices. Experts say that shops still need stock to sell in 2009-10, the problem now is how to finance inventory. Rossignol’s cash will help Dynastar pay suppliers and adapt production to the projected market. The group overproduced in 2008-9 and was left with around 250,000 unsold skis. A move that surprised industry watchers giving the looming worldwide financial problems.
Anyone know about this situation with Dynastar?