Chapter 736 Targeted Strike

As the largest hemp spinning center in France, Lyon, which has always been known as the "European Silk Center", has now developed into a metropolis second only to Paris.

At this moment, this dazzling pearl is no longer dazzling. Affected by the dumping of the British and Austrians, the French business community has ushered in the most brutal challenge.

Most companies have announced layoffs and production cuts, and the army of job seekers on the streets is increasing day by day, with few new jobs.

With almost every hiring, there's a commotion. Even if only three or five people are recruited, dozens of people will sign up.

It can be said that this is the easiest time for French companies to recruit people, and they can choose excellent employees as much as they want.

Companies that can recruit people against the market are the most powerful. A crisis for ordinary companies is a rare opportunity for these giants.

Lyon Moore Textile Group Co., Ltd. is the most dazzling one, with more than 170 factories of various sizes and a total of more than 130,000 employees.

The industrial chain covers the upstream and downstream of the textile industry, including cotton spinning mills, hemp spinning mills, wool spinning mills, silk factories, printing and dyeing factories, garment factories... and even their own raw material plantations.

In addition to the complete industrial chain, Moore Textile Group also has the most advanced textile technology, with more than 200 patents.

Such a giant, even if it is hit, has the strongest anti-risk ability.

Other companies have lost money, and Moore Textile Group is still profitable. Although this profit is already negligible, it is also an important distinction.

In the eyes of the outside world, this big group with infinite scenery is not having a good time now.

Profitable companies will also be short of money. The stock market crash breaks out, and foreign capital is impacting the financial market. The run on the market is intensifying.

In response to the crisis, domestic banks have shrunk their money supply, making corporate financing extremely difficult.

Inside the office building of Moore Textile Group

President Moore Saldas looked at the latest financial statement and sighed deeply: "When will the bank's loan come down?"

The Moore Textile Group is also supported by a consortium, but this native Lyon local consortium has rooted its roots in the industry, and it can't be in a gourd with the financiers in Paris.

This local consortium was an accidental product of Napoleon III's support of the industry. If there is no accident, with the support of the French government, this local consortium based on industry will slowly develop into a world-class consortium in the years to come.

The secretary returned to Hank and replied: "Mr. Moore, the situation has changed. A competitor has taken action. In the recent period, Ang Bank suffered a serious run.

The bank is raising funds for self-insurance. We have communicated through the consortium relationship. The bank said that as long as the run crisis is overcome, the loan will be released in the shortest time. "

Hearing this news, Moore-Xaldas's head hurt even more. Domestic banks have tightened their money supply, and unless they are very closely related, it is impossible to lend at all.

In the same consortium, Moore Textile Group and Lyon Bank are the pillars of the consortium. The shareholders behind the scenes are all cross-shareholders and have already formed a community of interests.

Before that, Moore Textile Group could get the maximum discount every time with its loan, and it has never been credited by the bank.

Now being rejected, it is clear that the bank is really in crisis and can't take care of their ally.

Since the competitors of Lyon Bank have already taken action, they will definitely not aimlessly, which means that the bank can't count on it in a short time.

The stock market crash is still rampant, financing from the stock market is simply unrealistic, and bank loans will not come down in a short time, leaving companies to issue bonds as a financing channel.

After pondering for a while, Moore-Sardas resolutely gave up this unrealistic fantasy. In the current economic situation, issuing bonds is self-inflicted humiliation.

"The notice is to suspend the construction of all new factories and cancel the plan for the large plantation in Africa. Let all departments take a careful inventory. As long as it is not an emergency project, stop it for me first."

In recent years, Moore Textile Group has expanded very rapidly. The profits of the company are all on the expansion, and it is also burdened with huge debts.

Now the economic situation is not good, and there are problems with the capital chain. In order to save the group's expenses, Moore-Saldas terminated the group's expansion plan.

Secretary Hank reminded: "Mr. Moore, these plans will be approved by colleagues and have been announced to the public. If they are cancelled now, I am afraid..."

Moore-Saldas waved his hand: "Now is a special period, and I will explain the situation to everyone sensible.

I would like to inform all senators that I will hold a meeting of the board of directors in three days.

Meet the mayor for me by the way, now we need help from the government. "

As a large group, there are more than 100,000 people eating with it, which has a very serious impact on the surrounding economy. If the Moore Textile Group is finished, the economy of the Lyon region will not escape the fate of collapse.

Before Moore-Saldas' self-rescue operation began, Keith Anderson, the head of the Commerce Department, came in.

"President, something is bad. We just received news that the group's many international orders were rejected by buyers.

We may have been targeted, and the Ministry of Commerce has sent people to communicate with them. It is estimated that there is little hope. Now the goods are still piled up on the ship and cannot be unloaded.

The Ministry of Commerce has notified it to suspend orders sent overseas, and make plans after further verification.

However, it is still a step too late, and seven more ships have already left the port. "

This is the worst news that Moore-Thaldas has ever heard, absolutely none.

Occasionally an order defaults, and Moore Group has also encountered it. Anyway, it has received a deposit and can sell it to others at a low price.

This kind of sudden multiple orders default at the same time, the situation is different, obviously someone is specifically targeting.

That's all in normal times. Moore Textile Group has a big business, and a little disturbance is nothing.

It's different now. At the time of the fiercest competition in the market, it is quite difficult to find a new buyer.

If one is not good, all these products will be thrown into their own hands. Moore Textile Group, which already lacks cash flow, has a backlog of a large number of commodities, and the company is in danger.

Moore-Saldas forced himself to calm down: "How much is the value of the defaulted orders, and how much will we lose if all these goods are in our hands?"

Keith Anderson replied with a sad face: "The contract value of the default orders is as high as 120 million francs, and if there is no buyer for these goods, we will lose up to 105 million francs on the books.

If we only calculate the cost, our direct economic loss will exceed 75 million francs.

This is just the beginning, and it is still uncertain whether subsequent orders will be fulfilled normally.

If all international orders are defaulted, the final loss may reach 100 million francs. "

Moore-Sardas's face suddenly gloomy, not to mention this crisis moment, even the loss of 100 million francs in normal times will make Moore Textile Group hurt.

Looking back on the group's internationalization process, Moore Saldas finally realized that something was wrong. The last year or two has been too smooth.

Originally thought it was a dividend from the Prussian-Russian war, but now he realizes that this is probably a pit dug by competitors for them.

The defaulters are all major customers of the group, and the two parties have cooperated more than once, but the previous orders were very small.

This year, it suddenly increased. Originally, Moor Xardas also suspected whether there was a problem, but the order was too tempting.

They also understand the basic situation of customers, and they are very strong in the local area.

Although the amount was a bit large, the deposit was paid quickly, and the economic situation was good at the beginning of the year, so the contract was signed without any problems.

Moore-Saldas said slowly: "Find a home for this batch of goods as soon as possible!

The group's capital chain is already very tight, and the domestic financial crisis has broken out. We must raise more cash to prevent accidents.

Don't pursue profit, as long as you can sell it, even if the price is cut in half, we will accept it. "

This is a dead horse as a living horse doctor. Moore Textile Group is well-known in France, and it is still an out-and-out newcomer internationally.

Even if they are developing very fast, relying on the influence of France and grabbing a lot of market from the British, the foundation is still not enough.

This breach of contract is the truest portrayal. If the foundation is solid, and there are multiple distributors in one region, this passive situation will not arise.

Now that the enemy has taken action, they will naturally think of the problem of finding a home for them. If you want to sell this batch of goods in a short period of time, it may be easier to ship them back to China.

Of course, this can only be imagined. Not to mention the increased shipping costs, it is nothing to be embarrassed to bring back the already exported goods, anyway, the capitalists are thick-skinned.

The point is that now the French market has also been hit by the dumping of British textile products.

Moore Textile Group's goods can only maintain a small profit, if they put more goods on the market, they will start to lose money.

If they were able to sell their unsalable commodities with a small loss, the capitalists would have done it long ago.

These days, no one is embarrassed to say that he is an entrepreneur without a backlog of warehouse goods.

The trouble is that the sales price of the goods has gone down, but the sales volume has not increased, that is to make matters worse, and it will really kill people.

It's not a joke, it really happened. All industrial and commercial products have been greatly reduced in price, and the products of the Moore Group have also been reduced in price and promotion, but the total sales have not grown much.

...

It is not only the Moore Textile Group that has been impacted. Compared with the light industry, the French heavy industry is full of corpses.

Since entering the second half of the year, the export price of the international coal market has risen for five consecutive years, with a total increase of 26.4%, especially the price of coke, which has risen by as much as one-third.

The sharp rise in raw material prices has put the French steel industry in a difficult position.

Without waiting for everyone to slow down, we ushered in a big price cut of steel.

The British and Austrian countries have maintained synchronized actions. The prices of raw steel and pig iron in the international market fell by 15.4% and 18.6% respectively. A large influx of cheap steel has directly brought the French heavy industry collectively into the era of negative interest rates.

The problem facing the French heavy industry now is: production equals loss, and the more production, the more loss; not producing is also at loss, the difference between the two is only a question of how much loss.

...