Restructuring & insolvency lawyer — Funfairs, travelling showpeople & amusement parks sector

Sector scope

Travelling showpeople and fairground businesses, ride and attraction operators, funfair and village fête organisers, fixed amusement parks, circuses, mobile venues and fairground game and confectionery operators.

Sector context

Fairground activity is intensely seasonal: turnover is concentrated on a limited number of dates while costs (equipment loans, transport, energy, seasonal staff) run all year. It relies on temporary occupation permits over public land granted annually by the municipality and revocable at will, and on high-value equipment usually financed by loans or leasing. A cancelled event, an adverse technical inspection or the loss of a pitch can be enough to unbalance cash flow; confidential out-of-court procedures allow equipment debt to be rescheduled before cessation of payments arises.

Key legal issues

• Public land occupation permits: parking permits or occupation agreements granted by the municipality, precarious and revocable in nature, and in principle not transferable to a purchaser (Arts. L. 2122-1 and L. 2122-3 of the Public Property Code).
• Equipment financing: leasing, hire arrangements and retention of title over rides and vehicles, which determine what assets can actually be sold.
• Technical inspection of rides: periodic inspection of fairground equipment is mandatory (Act No. 2008-136 of 13 February 2008); compliance costs must be built into the plan.
• Seasonality and procedural timetable: the observation period should be aligned with the operating season so that revenue can be collected and economic potential assessed.
• Seasonal staff: seasonal contracts, self-employed workers, possible reclassification, employee claims and the AGS wage guarantee scheme.
• Status of the business owner: sole trader or company, the sole trader's professional estate (Art. L. 526-22 Commercial Code) and its interaction with mobile accommodation.
• Tax and social security debt: contributions, VAT and instalment plans, with the option of referring public debt to the CCSF.

How a matter is handled

1. Diagnosis: review of available cash, due and payable liabilities, tax and social security instalments and existing security, in order to establish whether cessation of payments is characterised (Art. L. 631-1 Commercial Code).
2. Choice of procedure: arbitration between confidential out-of-court tools (ad hoc mandate, conciliation) and formal proceedings, in light of the sector's own timetable.
3. Negotiation: discussions with banks, strategic suppliers, the AGS wage guarantee scheme, the tax authorities and URSSAF, and where relevant before the CCSF.
4. Implementation: preparation of the filing, representation before the commercial courts, monitoring of the observation period, and preparation of the plan or of the sale.

French procedures at a glance

A declaration of cessation of payments must be filed within 45 days of that state arising, unless a conciliation request is filed within the same period (Art. L. 631-4 of the French Commercial Code).

Frequently asked questions

Can a fairground business use French insolvency proceedings?

Yes. Safeguard, rehabilitation and liquidation proceedings are open to any person carrying on a commercial, craft, agricultural or independent activity, and to private-law legal entities (Arts. L. 620-2, L. 631-2 and L. 640-2 Commercial Code), which covers fairground businesses run as sole traders or companies.

Is a municipal pitch transferred to a purchaser?

An authorisation to occupy public land is precarious, personal and revocable; it is not transferable as of right and does not amount to a business goodwill over public land. Its continuation requires a decision of the municipality concerned, separate from the judgment adopting a sale plan.

Do leased rides form part of the assets that can be sold?

Not while the lessor remains owner. Continuing the contract requires payment of rentals falling due after the opening judgment (Art. L. 622-13 Commercial Code); failing that, the contract may be terminated and the equipment returned, narrowing the scope of any sale plan.

How should a cancelled or badly impaired season be handled?

Anticipation is decisive: the confidential ad hoc mandate (Art. L. 611-3) and conciliation (Art. L. 611-4 et seq. Commercial Code) allow equipment loan instalments and public debt to be renegotiated before cessation of payments, which must be declared within 45 days of arising.

Are the operator's personal debts affected?

Since 2022 a sole trader has a professional estate separate from personal assets, and in principle only the former secures professional creditors (Art. L. 526-22 Commercial Code), subject to any security granted or waiver given.

Does a fixed amusement park follow the same framework?

The insolvency framework is identical. The issues differ: site lease or concession, operating authorisations, installation safety, and season passes or prepaid ticketing, which are pre-opening claims to be filed where they arose before the opening judgment.

Contact

Phone: +33 1 45 03 20 20
Email: accueil@macmahon-avocats.fr
Address: 33 avenue Mac-Mahon, 75017 Paris, France

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