Duralex suspends production to preserve its cash flow after being placed under judicial administration

Duralex glassworks will halt production for at least two weeks starting in mid-June. The decision was announced to employees in an internal memo as the company, which has been under court-ordered restructuring since June 1st, seeks to limit its expenses and secure its financial position. Set to be taken over as a cooperative by its employees in 2024, the iconic tempered glass brand is facing another period of uncertainty.

No glass will be manufactured during this period. Management explains that it wants to reduce raw material consumption and operating costs in order to preserve available cash. The company is also facing difficulties in sourcing packaging, which is complicating the execution of the production schedule planned for the coming weeks.

A new challenge for the worker cooperative

The main furnace at the La Chapelle-Saint-Mesmin plant, near Orléans, will not be completely shut down. It will remain operational in a closed loop to avoid the technical risks and considerable costs that a complete shutdown would entail. During this phase, only a few employees will be on site to monitor the facilities, while the rest of the staff has been asked to take leave.

Founded in 1945, Duralex is undergoing its fifth receivership in about twenty years. Approximately 60% of the 243 employees have invested in the cooperative society created last year to save the company. A hearing is scheduled for July 2nd before the Orléans Commercial Court. In the meantime, management hopes to recover nearly €1,4 million in outstanding orders and convince its financial partners to continue supporting the company.