The case describes how a loss-making ferry company was brought back to financial health, modernised and recapitalised in less than two years, amidst a context of political pressure, stakeholder hostility and a €600 million fine from the European Union.
The Société Nationale Maritime Corse Méditerranée (SNCM) was sinking under the weight of French blockades and belligerent unions. Ferries were hijacked and a million people took to the streets to protest against potential job losses, disrupting passenger services to/from Corsica at the peak of the summer season.
In May 2014, Guillaume de Feydeau was appointed CEO to devise a turnaround plan to save the former state-owned company from bankruptcy. The new management team not only had to master the political and social intricacies of the situation, but time was of the essence: the majority shareholder wanted out and cash was running dangerously low.
The case focuses on:
• How to develop a turnaround plan.
• How to analyse stakeholders’ positions.
• How to navigate through a politically sensitive environment.
Key takeaway:
• Aligning all stakeholders around a common objective is vital to succeed with a turnaround plan, as well as ensuring on-going, open and transparent communication.
- Turnaround
- Restructuring
- Bankruptcy
- Nationalisation
- Trade unions
- Corsica
- Local government
- European Commission/Union
- Privatization
- State aid
- EU regulation
- Q41819
