The Belgian chip processor Bart's Potato Company is in financial difficulties. The company, part of the Lamaire group, invokes the Business Continuity Act (WCO) to avoid bankruptcy.
The Lamaire group, now better known as Bart's Potato Company, is one of the larger potato companies in Western Europe. The company in Vleteren (West Flanders) trades approximately 200.000 tons of potatoes annually. A few years ago, the production of frozen fries became a serious part of the company. Today the factory has a production capacity of 50.000 tons of fries and other frozen potato products.
Stagnant sales
The fact that the company is in financial trouble appears to be a direct result of the stagnated French fries sales since the corona crisis. Also others chip processors As a result, they have had a lot to choose from. The Krant van West-Vlaanderen reports that Bart's Potato Company has applied for the WCO. José Lamaire, founder of the family business that started in 1996, is said to have confirmed that news. With the application, the company wants to protect itself against creditors.
The law provides for an extrajudicial procedure. In that case, Bart's Potato Company informally concludes an agreement with the creditors and determines the agreements itself. During the legal proceedings, freedom is limited and the company is presented with a number of options to implement a reorganization. Whether Bart's Potato Company's application will be granted by the court depends, among other things, on the continuity of the company and the prospects for economic activity in the longer term.
Substantial investments in recent years
Between 2014 and 2016, Bart's Potato Company invested €38,1 million in a new production method. This means that the fries do not have to be pre-fried before being frozen and a fat-free product can be delivered. A patent was applied for for the process and the Flemish government provided an investment injection of €1 million. More than 50 jobs were created with the new production facility.
In 2018, the construction of a frozen warehouse was started in the port of Dunkirk in Northern France. The warehouse is intended for the export of frozen fries to overseas destinations such as Asia, the Middle East and Africa. It is said to have a capacity of 30.000 tons per year.