Verney-Carron, one of France's most established arms manufacturers, filed for bankruptcy and the Saint-Etienne-based company has been on the verge of closing down due to financial difficulties in the small-caliber rifles and shotguns it has been producing for many years. Founded in 1820, Verney-Carron was the oldest arms manufacturer in France, but increasing financial problems in recent years have threatened the company's future. The company's owner, cybergun According to the statement made by, salary payments were stopped and production activities were terminated. This bankruptcy process led the company to apply for restructuring.
Verney-Carron's Bankruptcy and Restructuring Efforts
The bankruptcy of Verney-Carron marks a major turning point in France’s arms manufacturing industry. The company is a Belgian FN Browning Group was negotiating an industrial partnership with and this partnership could be a solution in the future. However, the company's financial problems deepened and by 2025 1 million Euro debt Still, with Cybergun’s €12 million investment, Verney-Carron’s 200-year history has found itself searching for a new shareholder to back it.
The company has applied to the court for an extension of the observation period. It is expected that Cybergun will have the opportunity to improve its financial situation and the company will be restructured during this period. However, the future of the company is very uncertain and these developments in the sector, especially with Verney-Carron slowing down its production activities, are being watched carefully.
Agreement with Ukraine and Production Process
Verney-Carron's financial problems have also put the company's 2023 deal with Ukraine at risk. Ukrspetsexport The €36 million deal with Ukraine covered the production and transfer of 10.000 assault rifles, 2.000 sniper rifles and 600 40mm grenade launchers for the Ukrainian Armed Forces. The major deal was seen as a significant step towards strengthening Ukraine’s defence capabilities. However, financial turmoil within the company and delays in product deliveries are threatening the timely fulfilment of the deal.
Ukraine, At the beginning of 2024 was expected to receive its first deliveries. However, Verney-Carron's bankruptcy raises questions about whether these deliveries can be made. The company has had difficulty finding the financial resources to rebuild its production capacity, and this is Ukraine's needs may constitute a critical obstacle.
A New Era in the Weapons Industry
The Verney-Carron bankruptcy is a significant warning for the French arms industry and the international arms trade. The collapse of a 200-year-old company due to financial difficulties could have a profound impact on other arms manufacturers worldwide. The company’s restructuring and the outcome of the agreements with Ukraine will shape future arms production and supply chains. Furthermore, France's defense industry This bankruptcy also raises a serious question mark regarding the sustainability of production and supply processes.
