According to a French internet newsletter – Le Télégramme.com – the group, which has around 700 employees in total and many links with UK businesses under its Navimo brand name, is about to apply for receivership at the French Commercial Court of Lorient.

Calls by BB to Navimo and Plastimo both yesterday and today have gone unanswered, along with attempts to contact the CEO of the group, Albert Journo. However, the French article quotes an unnamed employee as saying that “the company is still operating... that's something positive for the accounts”, adding that there are hopes that liquidation can still be avoided – presumably through finding a buyer.

It might not be such a big surprise for some. Industry sources from as far afield as Italy have been “aware” of insolvency stories, and UK sources connected with Navimo said that there have been rumours around for a while. METS saw Navimo suppliers being told the company was having troubles and they would be paid just 30% in the pound with the rest being paid “at some time in the future” if they continued their support. However, according to some, this hasn’t been followed through.

Further, it’s well known that the business was struggling following the credit crunch and a number of less than fruitful changes in direction, but the announcement of delays in wage payments further raised bankruptcy fears.

Although Albert Journo took up the post of CEO in June 2009, restructured and managed to get lenders to write down debt from €101m to around €9m with UK based private equity injecting another €6m into the business, Mr Journo himself was recently quoted in Le Télégramme.com as saying the business faced "a very tight cash market”.