Popular clothing store Blanco filled for liquidation
The clothing company Blanco has decided to lay off all of its 850 employees as well as closing its chain of stores, compromising of 120 establishments. According to Europa Press, the decision was made after the firm submitted a liquidation form before the Commercial Court of Toledo.
Other similar sources have mentioned that the closure of Blanco stores and dismissals of all the employees will be carried out progressively, after the judge approves of the request to liquidate the business, with a liability of €133 million. On the other hand, members of the Labours Union, have stated that “Blanco is dead, it has no sense style“. They further made clear that, after the judge approves of the liquidation, a negotiation to schedule the closure, together with “the best possible conditions” for the workforce needs to be set, as the company owes 23 days of November payroll.
During the Christmas season, the fashion company officially closed its website ( www.blanco.com). Blanco has been under the new management of AC Modus for three years, however, as they were not able to find a “suitable investor“, the company was forced to file for bankruptcy all over Spain and Portugal.
This is the second failure that this business has faced. The first time was in June 2013, when the former founder of Blanco, Bernardo Blanco filed for bankruptcy caused by the seriousness of company’s economic and financial position.
Before officially declaring a second bankruptcy, AC Modus indicated that Blanco was maintaining a “considerable investment” in the Spanish and Portuguese branches. However, both divisions were still not generating profits, which was the main reason as to why, during the last two months, the management was looking for an investor to keep the business running.
Though the firm demonstrated the “great efforts” they have done during the three years in business, the attempts of finding a suitable investor came with no success. The management had to then come with a decision to “submit the liquidation process application” in both countries, as the organisation required to come up with a resolution based on the current market and the future of society.
Last September, The fashion firm presented its third Labour force adjustment application, however, the form was annulled after the aftermath of the previous staff adjustment plan, where around 900 former employees of Blanco protested against the firm. 711 of these protesters where former employees of Blanco, before the business’ failed in 2013.
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