A French court on Tuesday placed long-time coach firm Eurolines into compulsory liquidation, an attorney for the company’s workers told AFP.
After 35 decades, the French transportation giant will discontinue surgeries on Friday.
It arrived following Eurolines was purchased by German team FlixBus this past year, but unions have promised that the holding firm refused to start looking for a purchaser and is benefiting from this coronavirus pandemic to ax projects.
At the end of June, FlixBus requested bankruptcy proceedings be started because of its subsidiary, but the court asked the Eurolines to continue to run under court management for a single month.
“Flixbus has drained Eurolines of its substance, Will recover market share and is now attempting to Eliminate the workers without paying anything,” Pierre-François Rousseau, an attorney representing Eurolines workers, told AFP
He explained the German manufacturer had used the financial crisis caused by the COVID-19 pandemic for a pretext.
When requested by Euronews, Eurolines’ administration stated it didn’t need to comment on the court’s verdict but said in an emailed statement that bankruptcy proceedings against the 36 individuals still used by Eurolines were”inevitable on account of the fiscal situation where the organization finds itself”
It included that the firm’s financial issues were”unexpectedly and strongly aggravated from the health and financial crisis brought on by the COVID-19 pandemic, which has struck all road passenger transportation and triggered an unprecedented international fall in demand”
Flixbus had undertaken attempts to conserve Eurolines in the kind of significant investments plus a reorganization plan, among other steps, the announcement said.
Approximately 20 workers were present in the front of the court for the event, which were held behind closed doors.