Coop Breizh in ‘Financial Default’

With the recent announcement of the spin-off of the music business, we were waiting for the other shoe to drop, and it has. The main Breton publisher and distributor, Coop Breizh is in financial default - what we in the US call bankruptcy. The company, based in Spézet (Penn Ar Bed), sought placement in receivership on Wednesday,  September 11th, 2024. Coop Breizh has 17 employees and a turnover of around EUR 3.3 million per year. Since its creation 65 years ago, the cultural products company has established itself as the main player in the distribution of Breton books and music. When Coop Breizh was created in 1957 it was to meet one objective: to promote Breton culture, specifically in the form of hard-to-find Breton books, recordings, and cultural items. The employees and suppliers learned shortly after the business met on Thursday September 12th with the Commercial Court of Brest to declare itself in default before a possible receivership, according to France Bleu Breizh Izel.

Difficulties for several years

Coop Breizh has been facing financial difficulties for several years, particularly due to the recording industry crisis (LINK) as well as COVID-related debts. In 2022, the Coop closed its bookshop in Quimper and dismissed three employees to save money. Last year, the Coop ended its music production business and sold its catalog to wipe out part of its debts. The main reason for this payment is the recent steep decline in sales of the cultural products distributed by Coop Breizh in its approximately 2,000 partner outlets, mainly in Brittany. Sales fell in the range of 15 to 20%, i.e. "tens of thousands of euros in three months' losses", explains one of the managers.

Rescission of payment and possible receivership are expected to have consequences for the main suppliers of Coop Breizh, including significant delays in payment for some 60 Breton publishing houses and about 100 music labels. "Although Coop Breizh's future is not immediately threatened, it is a big warning signal," one of the main regional suppliers of the company stated.

The publisher and distributor of books and music announces that it is in arrears on Wednesday, September 11th, 2024. The company, based in Spézet (Finistère), has not  given up, stating “The difficult economic, meteorological and policy contexts of the year have disrupted consumption and caused the sharp slowdown in the book market and structure activity. The end-of-year tourist season was disappointing, betraying hopes for regaining profitability” also asked the court “to be put into court receivership in order to have the time needed for restructuring. ”

The company announced that "new rounds of discussions with partners that could be added to the company are being scheduled.”  In 2022, the Coop had already called for help from the public, offering membership to interested parties. If no solution is found this time it will have significant consequences for the world of Breton publishing and culture.

According to France Bleu Breizh Izel, the company wishes to continue its activity, still pursuing the objective set when it was founded in 1957: to radiate Breton culture. Whether in receivership or not, Coop Breizh intends to continue: "Despite the context, it is important to continue doing what we do: putting out new things, promoting our catalog and disseminating the goods as widely as possible", stated one of the company's managers.

For us here at ATB, a world without Coop Breizh would be a much diminished experience, as it is one of the main sources for the books and recordings that we love so much, that give Bretons far away from Brittany the opportunity to easily gain access to fresh material.

~ Fañch