Nov 17, 2016
Spain’s Blanco falls into administration
Nov 17, 2016
Spanish womenswear brand Blanco has been placed into administration after plans to find a buyer failed.
It is currently owned by Dubai-based fund AC Modus which trades under the name of Global Leiva in Spain. The company was acquired from Saudi Arabian group Alhokair.
In a statement AC Modus noted the ‘significant’ investment it has made in the company which has stores in Spain and Portugal.
“However, after a comprehensive review of the company and introducing a new business model, designed to generate profits in both Spain and Portugal, both divisions continue to miss targets,” said AC Modus.
The firm said attempts to find a suitable investor have been unsuccessful and that due to the difficult circumstances, it has been forced to file for bankruptcy in both countries.
Blanco’s parent owner said it is fully aware this decision puts hundreds of jobs at risk but emphasized the need to take a decision based on current market conditions.
Blanco has over 102 stores in Spain and more than 980 employees who have held several demonstrations in the last months to protest against the uncertain future of the company.
According to its website, the brand has also stores in Andorra, Saudi Arabia, Armenia, Azerbaijan, Egypt, United Arab Emirates, Georgia, Honduras, Jordan, Kazakhstan, Kuwait, Macedonia, Malta, Moldova, Peru, Portugal and Qatar.
Over the last three years the company has fired nearly 900 people and closed over a dozen loss-making stores.
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