Mandriva offered a Linux operating system for PCs that was doing well in some developing nations and the company was just about to make a profit when it was sunk by employee lawsuits forced it into bankruptcy.
The company had generated a mere €553,000 in revenue in 2013, with revenue falling for years,. Croset confirmed that wasn’t enough revenue, so he had to dismiss some sales staff.
Revenues started to climb again when the laid-off workers sued the company and won.
The company was ordered to pay these employees hundreds of thousands of euros and ordered to pay “provisory execution,” meaning immediately, even though the appeals process was not complete, Croset tells us.
After so many years of struggle, the shareholders didn’t want to put up more money to save Mandriva, and the company was forced into bankruptcy,
Croset said that the labour laws are very generous towards the employees in France, those court decisions forced the company to announce bankruptcy, as the cash available was not sufficient to cover the amounts due and the shareholders did not want to cover them.