Mercadería SAS said the pandemic emerged months before the business broke even.
The Superintendency of Companies admitted Mercadería SAS, better known for its Justo & Bueno stores, to the emergency negotiation process of a reorganization agreement.
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This procedure, established in Decree Law 560, is a rescue and business recovery mechanism for those debtors who are affected by the causes that led to the declaration of the State of Economic, Social and Ecological Emergency due to the COVID-19 pandemic. .
The company requested the Superintendency to allow it to benefit from the reorganization process at the end of April, with the aim of protecting collaborators, creditors and allies due to the “difficult situation generated by COVID-19, restrictions and closures,” explained the business.
The company, which has been operating for five years, has more than 1,300 stores in 310 municipalities of the country and generates about 20,000 jobs, of which 9,300 are direct and more than half are women.
At the time Mercadería SAS said that the pandemic emerged months before the business reached its breakeven point, “the emergency negotiation process aims to pay the company’s liabilities in full and is designed for the recovery of viable companies how is”.
According to Supersociedades, with the agreement it is possible to avert the crisis and preserve the company and employment by negotiating with creditors and confirming a reorganization agreement.
The entity explained that, within the framework of the procedure, the company must set a notice regarding the term of duration of the negotiation, notify the creditors of the beginning of the emergency negotiation and all the judges and entities that carry out executive processes, restitution , for the execution of guarantees or coercive collection, in order to have them suspended during the process.
Subsequently, Mercadería SAS must initiate the negotiation with its creditors and enter into the reorganization agreement within a term of no more than three months for confirmation by the Bankruptcy Judge.
