Carrefour Argentina, nation's largest supermarket chain, declares bankruptcy
Carrefour Argentina, the nation's largest supermarket chain, has announced it's declaring bankruptcy.
The company, a subsidiary of the Paris-based multinational retailer, is seeking a reorganization of its debts similar to a Chapter 11 bankruptcy under U.S. law.
Carrefour, which opened its first Argentine supermarket in 1982, operates 585 stores in the country and has a 20% market share.
Company spokesmen have publicly assured the firm's 19,000 employees that layoffs will be limited to 1,000 offers of voluntary retirement. "Our objective is finding solutions to guarantee the sustainability of our operations in Argentina," a Carrefour spokesman said.
Minutes from a board meeting leaked earlier this year, however, confirm that the company plans to close 11 of its largest stores, affecting 2,700 employees.
"We expected this because we were aware of Carrefour's plans for downsizing," Mario Amado, trade union delegate for Carrefour's Warnes Avenue (Buenos Aires) store, told Página/12. "They have a plan in mind that they do not intend to give up - and they send managers to tell people that there will be no layoffs. Carrefour is not acting in good faith."
Carrefour's woes are typical of much of Argentina's retail sector since President Mauricio Macri enacted a 40% devaluation within days of taking office in December 2015.
Inflation initially doubled to 45% in 2016, and has remained at 25% since then. The government opposes any collective bargaining raise in excess of 15% for this year, triggering a series of massive strikes.
Annual sales in Argentina's leading supermarket chains have fallen by 16% since Macri took office, from $25 billion in 2015 to $21 billion last year.
Nor are customers shifting their business to smaller venues. The Argentine Medium Business Chamber (CAME), which includes most smaller retail chains, reports an 8% decline in real sales from 2015 to 2017 - with another 2% decline as of this March.
At: https://translate.google.com/translate?sl=auto&tl=en&js=y&prev=_t&hl=en&ie=UTF-8&u=https%3A%2F%2Fwww.pagina12.com.ar%2F106253-en-las-gondolas-del-super-madura-el-ajuste&edit-text=
A Carrefour market in Buenos Aires. The French-based chain was a top contributor to Mauricio Macri's right-wing campaign in 2015.
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