One of the oldest arms companies in France went bankrupt because of Ukraine

The French arms company Verney-Carron, established more than 200 years ago, announced the termination of payments to employees and launched a bankruptcy case, one of the reasons for this was the breakdown of a contract with a Ukrainian company worth € 36 million. This was reported by BFM TV.

The hearing in the Verney-Carron case will be held on February 12, according to a press release from the French Cybergun group, the majority shareholder (65%) of Verney-Carron since 2022.

For several years now, the legal entity has been incurring losses, in 2023 they amounted to € 4.54 million with sales of € 5.45 million. In November 2023, the arms manufacturer announced a contract with the Ukrainian side for the supply of assault rifles, sniper rifles and grenade launchers, but it has not yet been "confirmed," BFM TV noted.

In early December 2024, the company laid off most of its 70 employees for three months due to a lack of orders and money to finance deliveries. The transition to the production of small-caliber combat weapons, recently implemented by the leadership of Verney-Carron, also could not compensate for the loss of the market.

The company was founded in 1820, it is the last remaining manufacturer of small-caliber firearms in France, the TV channel said.