MuyMucho will file for bankruptcy with a debt of 15 million
MuyMucho will file for bankruptcy in the coming days as it finds itself unable to meet its payments to banks and suppliers.
"We have found ourselves in this situation after several months of trying to negotiate a debt restructuring with creditors," says Albert Boada, general manager of the household goods chain.
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The Sant Cugat-based company filed for pre-bankruptcy proceedings two and a half months ago before the commercial courts of Barcelona and now plans to take a further step following the status of its insolvency.
According to Boada, the company's liabilities amount to approximately €15 million, which have accumulated as a result of the ongoing effects of the pandemic crisis on the business. Creditors include major financial institutions (such as Caixabank) and several logistics and product suppliers.
If the interested company formalizes its offer to acquire the productive unit, then the court will open a competitive process.Despite this situation, Boada remains confident in the future of the business. "There's a Catalan company in the sector that will submit an offer to acquire the production unit," he comments. This company aims to keep its 12 stores open and retain its entire workforce, consisting of 130 store employees and 50 at the headquarters.
Boada assures that this proposal has been communicated to the franchise partners, who control 150 stores in a total of 24 countries. "They have been informed and have expressed their support for the new buyer's entry," he notes. Furthermore, this Catalan company has also committed to lending MuyMucho approximately €10 million to ensure business continuity during these transition months and to safeguard the Christmas campaign, which is crucial to the company's revenue.
If the purchase of the production unit ultimately goes through, the Quiles family would lose ownership of the business, as is customary in this type of bankruptcy proceedings. At the moment, MuyMucho is in a pre-bankruptcy situation and is finalizing the bankruptcy filing with the commercial courts of Barcelona.
If the interested company formalizes its offer to acquire the production unit, as seems likely, the court will then open a competitive process in which other companies can submit their bids. In any case, the court will have the final say.
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