Coach transport company Eurolines is going bankrupt, the employees’ lawyer said on Tuesday.
“The company officially ceases” on 24 July, said the lawyer, Pierre-François Rousseau. “The liquidation was expected,” he admitted. “We had obtained a reprieve which was already a victory for the employees.”
The management of Flixbus – Eurolines’ parent company – requested the opening of bankruptcy proceedings for Eurolines at the end of June. Flixbus had bought the company from Transdev barely a year before. However, the court requested that the subsidiary continue to operate under court administration for one month.
“Flixbus has emptied Eurolines of its substance, is now going to regain market share and is now trying to get rid of the employees without paying anything using” the economic crisis linked to the new coronavirus (Covid-19) as a pretext, Rousseau said.
The decision concerns 36 employees still active within the company, while a little more than fifty have already been placed in redeployment in the framework of a plan to safeguard employment, said Mohamed Bessaoud, trade union delegate of CGT Eurolines.
Eurolines management told AFP it did not wish to comment on the court’s decision, but said that “the opening of collective proceedings against the 36 employees still employed by Eurolines appears to be unavoidable because of the company’s accounting and financial situation.”
This situation has “suddenly and strongly” been “aggravated by the health and economic crisis caused by the Covid-19 pandemic,” they said.