Grupo Siro, one of the most important companies in Spain, manufacturer of biscuits and other foods, is close to its closure after having ordered the stoppage of production of all its plants in Castilla y León. The reason: the investment partner withdraws and cannot continue accumulating a debt that now reaches 300 million euros.
Siro’s investment partner has decided to withdraw after thethe refusal of many of its workers to take advantage of a program of cuts that had been proposed to revive the company. “We inform you that the investor has communicated in writing, given the situation of lack of agreement with the workers for the improvement of competitiveness, that it is not in a position to proceed with the closing of the operation nor, therefore, to undertake the investment under the terms set forth in the agreement,” the company reported on Friday.
The interested investors, Davidson Kempner and Afendis, had offered an injection of 180 million euros and assume 75% of the group’s shares, but finally they have canceled the operation. From Siro they assure that they had complied with all the requirements demanded by investors: agreements with creditors and shareholders and the authorization of the National Market and Competition Commission (CNMC). “The only requirement that has not been met, and which has been decisive in the decision of the investment group, is the rejection of the Competitiveness Improvement Plan by a part of the workers”, indicates the company in the statement.
All plants had to approve the adjustment plan for the company to move forward. The workers at the Venta de Baños and Toro factories have rejected it, and only the Aguilar de Campoo factory has given the green light. Siro has explained his decision after knowing the withdrawal of the investors: “We decide responsibly for productive activity in the coming days and only manage the box with the stock of finished product that we have”. As indicated The confidentialGrupo Siro is the most important biscuit company in the country and the second in sales volume.
The closure of Grupo Siro would be accompanied by the loss of numerous jobs and negative effects for the agricultural sector of Palencia, Zamora and Valladolid, provinces that sell part of their production to the biscuit maker. Also, would mean the disappearance of Mercadona biscuit brands: according to DeloitteGrupo Siro allocated 88% of its sales in 2018 to the Juan Roig supermarket chain.
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