Cabasse Requests Opening of Judicial Recovery Procedure
Cabasse has filed for insolvency with the Montpellier Commercial Court and requested the initiation of a judicial recovery procedure. This move comes after a significant downturn in the business of the French luxury high-fidelity audio specialist.
Filing for Insolvency
On February 27, 2026, Cabasse filed a declaration of insolvency with the Montpellier Commercial Court and requested the opening of a judicial recovery procedure. The company's staff representative bodies were informed on Thursday, February 26, 2026. This move occurs in a context of significant downturn in the company's activity, affected by supply difficulties from some of its main Asian suppliers and subcontractors.
Financial Strains and Supplier Terms
In recent weeks, pressures on Cabasse's cash flow have led to a sudden and substantial tightening of payment terms imposed by its suppliers, with some demanding full payment at the time of order for deliveries made 4 to 6 months later. Given these new conditions, the financing contract through the issuance of convertible bonds (OCAs) implemented in March 2025 is no longer sufficient to fund the company's operations. These factors no longer allow for debt rescheduling in the discussions with financial partners, making bank debts payable immediately.
Objectives of the Judicial Recovery Procedure
The goal of the judicial recovery procedure is to assess all solutions that can sustain the business, preserve employment, and settle liabilities, as well as to initiate a process of seeking investors as part of a continuation plan or a transfer plan. The Montpellier Commercial Court will soon make a decision on this request. Given the uncertainty regarding the outcome of these proceedings, a suspension of the trading of Cabasse shares on Euronext Growth® has been requested and remains in effect until further notice.
