Thousands Of Bars And Shops Have Given Towels To The Epidemic
2021-02-06 | by CusiGO
The impact of coronavirus crisis on production organization has two main variables: the intensity of infection rate and the duration of pandemic. The company believes that this route will be shorter and less toxic. But these two variables were aggravated by the invasion of virus after summer. The authorities have tightened restrictions to reduce infectious diseases. This led to the financial exhaustion of thousands of companies and triggered the bankruptcy of hotels and businesses in the last quarter. According to ine, sales of bars and restaurants are up 67% from the fall, while business activity is up 12%.
The seriousness of the epidemic has left more and more marks on enterprises. These indicators show the depletion of production organizations, as employers in the most affected sectors have warned, and without direct assistance to stop the bloodshed, it will start with a series of closures.
On Friday, the statistics on bankruptcy proceedings were confusing: competition among corporate creditors is down 14% by 2020. However, the growth rate of the hotel industry was 35.6%, despite measures such as the suspension of competition by the administration. Beatriz Rua, KPMG’s partner in charge of bankruptcy and proceedings, warned: “the government’s suspension order has temporarily curbed the tsunami of creditor competition.”.
Nevertheless, the negative trend in all activities intensified at the end of the year (35% higher in the fourth quarter than in the third quarter). Among the countries with the largest number of bankruptcies, hotel processes increased by 67%, industry and energy by 54%, construction by 40% and trade by 12%. Specifically, there were 1383 games between October and December. That’s a low percentage of the total number of companies, but it’s a further indicator that it’s a negative trend, like RTE (still over 700000) or the smallest company this year.
“We have to wait and see what happens next quarter, but we have seen a clear trend. The next few months will be tough as the recovery starts in the second half of the year. “That’s why we need more aid policies to deal with this situation and what tools to use,” explains Raymond Torres, head of economics and international economics at funcas.
At the end of last year, he developed symptoms of fatigue. Business activity in early 2021 is complex. The future is full of dark clouds. This is the point of view of analysts, especially employers. Jos é Luis yzuel, President of the Spanish hotel industry, has been calling for more support for months. “By 2020, they have closed 85000 hotel businesses and reduced their turnover by $70 billion. We need direct aid, and we look forward to it like other European countries. There is a lot of disappointment and despair in this industry. ”
These are big numbers. But on the street, behind every number, there are people experiencing crises. One of them is Juan C é rcoles, who owns 30 restaurants and restaurants in Aragon. In his case, he saw no other way out, but after bankruptcy, accumulated more than a million euros in debt at the end of the year. In December last year, the Zaragoza court declared him continuous competition and prevented the liquidation of the company: “I don’t want to close the company I’ve invested in for 30 years, which is why we continue to fight,” he said by telephone. Emilio Gallego, Secretary General of the Spanish hotel industry, added: “our biggest concern is that the situation continues to deteriorate, we may experience a snowball effect and everything will get worse.”
On the trade side, it’s also dramatic. Last year, a fifth of the entrants came from the industry (840 out of 4097). Pedro Campo, President of the Spanish Trade Federation, joined yzuel in calling for strong measures and quantifying the number of 100000 businesses that have been closed as: “without direct aid, we will see a series of real closures. Without consumption, trade is at its limit. And then there’s a real drama. ”
The Odyssey also hides thousands of stories. Like angel aramburu, he closed his sneaker store in central Seville in March for fear of what was about to happen. In September, he decided to come back, and then the second and third waves hit him. And the worst Christmas events and discounts ever. “If I continue to close at 6 p.m., I won’t survive,” he explained obediently.