Mess with suppliers, among the reasons why Fedco will go to reorganize

The Superintendency of Companies, headed by Francisco Reyes Villamizar, reported yesterday that the Colombian cosmetics chain Fedco SA, was admitted to reorganization, after the Delegation of Insolvency Proceedings of the same entity, endorsed the application filed directly by the legal representative of the company, Juan Guillermo Ruíz.

According to Fedco informed Supersociedades, the decision was related to the company's inability The company absorbed the growth of its liabilities, its debts having been due more than 90 days rising to nearly 42,000 millions of dollars, which represented 15% of the total value of its liabilities, amounting to $ 273,504 million.

who might know this journal, there were four factors that led to the exponential growth of this figure. The first, a major investment in capital badets, has generated significant financial costs, which has reduced the ability to pay suppliers. The second was the exit of the market from its main supplier, which accounted for 13% of the products offered by the chain and gave up to 60 days to fulfill obligations. But in addition, the brand's products were sold and the replacement with other owners took between six and nine months, adding that new traders required advance payments on their orders.

A third factor was the economic slowdown The list was supplemented by the decrease in stocks in the chain, which led to a substantial reduction in its revenues.

In fact, another document that LR learned about the financial situation of the group. on December 31, 2017, it shows that most of Fedco's liabilities have increased compared to 2016.

For example, employee benefit commitments totaled $ 1,347 million, while in 2016, they stood at $ 1,303 million. ; accounts payable, between commercial and other loans, amounted to $ 56,780 million, compared to $ 52,482 million added in the previous year; Similarly, the current tax liabilities amounted to $ 13,026 million, up from $ 12,691 in 2016.

In addition to adding 32 stores in 14 cities nationwide, under the Aegis of its trademark Fedco, The Fedco Group is also an ally of the Canadian company Mac Cosmetics in Colombia. With her, he operates, as a franchisee, three of his stores in Bogotá and Bucaramanga. Similarly, Fedco is the only representative and distributor of Smashbox and Gosh brands in the country.

However, the scale of its operation has not proven sufficient for the magnitude of its debt. According to Supersociedades, at the end of December 2017, Fedco reported losses of C $ 13,501 million and its revenues reached C $ 93,817 million, nearly half of the amount obtained in 2016 for Pta 166,575 million. Chilean. Reyes pointed out that "through reorganization processes, companies can enter into negotiations with their creditors in order to reach an agreement that allows them to remain a productive unit and the source of job creation". In this case, it is about 400 direct jobs

The troubles of the owner of Fedco

One of the last chapters of history with Fedco justice was carried out by its owner Leo Eisenband, who denounced Camilo Bula, convicted for the misappropriation of property seized by the DNE, with Oscar Montoya, who according to the prosecutor's office was the Bula emissary for collecting bribes, were those who made him sing so as not to testify against him. To demonstrate the above, Eisenband gave the accuser several copies of the conversations they had between them, and hours of recording that support this version.