French Firm under Contract to Supply 12,000 Rifles to Ukraine Goes Bankrupt

French firearms manufacturer Verney-Carron, which had a contract to supply Ukraine with assault rifles, has declared bankruptcy, according to its parent company, CYBERGUN.

The company has stopped paying wages and suspended production due to a complete freeze on its finances.

Verney-Carron, which has a two-century history, currently holds a debt of €1 million. Despite receiving a €12 million investment from CYBERGUN, financial difficulties persist. A court hearing scheduled for February 12 is expected to confirm its insolvency. Efforts are underway to find a new shareholder to keep the company operational.

In 2023, Verney-Carron signed a €36 million agreement with Ukraine's state arms exporter Ukrspetsexport. The deal included the delivery of 12,000 rifles and 600 underbarrel 40-mm grenade launchers for the Ukrainian Armed Forces. The first evaluation batch was expected in early 2024, with final deliveries planned within six months of the contract signing.

Verney-Carron manufactures a range of firearms, including the VCD15 assault rifle in 5.56 mm and .300 AAC calibers, which had previously competed for selection as the French Army's standard rifle. The company also produces the VCD10 sniper rifle, chambered in 7.62×51 mm.

It remains unclear whether Verney-Carron has fulfilled its contract with Ukraine, as financial problems and delivery disruptions began in 2021. The bankruptcy raises concerns over the future of the contract and the completion of planned weapons deliveries.