French Arms Manufacturer Verney-Carron Files for Bankruptcy

Verney-Carron, a French firearms manufacturer based in Saint-Étienne, will be forced to file for bankruptcy, its parent company CYBERGUN says. The company was scheduled to file insolvency at a hearing on 12 February. To recapitalise CYBERGUN is now in search of an industrial partner who can help stabilise Verney-Carron. The company has two arms, Verney-Carron which specialises in production of sporting arms and Lebel, the company’s defense arm which produced a selection of AR-15, AR-10 and AR-9 pattern rifles.

CBERGUN took control of the company in 2022, previously Verney-Carron had entered the French Army’s tender for the replacement of the FAMAS. In a statement published on 11 February, CYBERGUN said:

“CYBERGUN has undertaken in-depth work on industrial restructuring. While the Company does indeed have incomparable expertise in arms manufacturing and a recognized " made in France " industrial capacity, CYBERGUN considers that it needs the support of an industrial partner specializing in small caliber.”

CYBERGUN states that they are currently in ongoing discussions with a “major player in small arms at the global level” and the filing for bankruptcy is part of the restructuring of the company.

Hugo Brugiere, manager of CYBERGUN and representative of the management of VERNEY-CARRON, said in a statement:

"The work carried out by CYBERGUN alongside VERNEY-CARRON is the result of a clear vision: that of preserving and strengthening unique French industrial know-how. We have been able to restructure and support, and today we want to go further by remaining a strategic partner committed alongside a leading industrialist. This is how we will be able to guarantee a solid future and sustainable development prospects for VERNEY-CARRON. This path is nevertheless strewn with pitfalls and we need the protection of the Commercial Court and the active support of the public authorities to win this new battle."

In late 2023 Verney-Carron signed a framework contract with Ukrspecexport, a Ukrainian state-owned arms trading company, for a substantial number of small arms. The contract covered carbines, precision rifles and 40mm grenade launchers. The contract was worth 36 million Euros or $38.5 million and would have included 10,000 VDC-15 assault rifles, 2,000 VDC-10 precision rifles and 400 LP40 grenade launchers. The status of the contract is unknown, but deliveries were supposed to begin in early 2024 and be completed by early 2025.