Disillusioned Imagination: 41 Of Spain’S 43 Shops Are Closed
2021-02-18 | by CusiGO
It’s dangerous to imagine being a bad toy. It’s a dream story, especially in the 1920s, which has turned into a nightmare in the past five years. So much, the company is negotiating to reduce its structure to a minimum: as of the end of this month, of the 43 stores it currently owns, only two are in Spain, one in Malaga and the other in Zaragoza, with 111 workers out of 144 to be laid off, according to union sources. In this way, you are left with e-commerce to avoid eventual closure.
The toy company, founded in 1994, has been an icon for generations, and its two door shop (an adult sized door and a child sized door) is very popular. His years of glory, in the hands of Felix Tanner, and even make him widely exist in the world. Still, with this expansion, a brand that is unique in the toy industry is starting to have financial problems, according to the union. In the near future, he will close shutters in his 41 stores and an ere that will come into effect at the end of this month.
The company has been in tough negotiations with its employees for a long time, even though it still resists and believes it can survive. “For the past few years, we’ve been thinking about finance, but with cowid coming, things get complicated. What we’re doing is moving to a business model that doesn’t rely on physical stores. “We’re not closed, we’re changing,” Federico Carrillo, imaginaum’s chief executive, explained in an interview with the Aragorn newspaper on Tuesday.
According to workers’ representatives, the stores to be retained have been changing since the negotiations began. For now, at least, it’s the ingenio mall in Malaga and the aragonia mall in Zaragoza. According to union sources, this will add eight to 10 franchises. Carmina Ramos, head of union action at CC OO Aragon, complains: “this company is not viable, they are using legal tools to fire workers without paying the liquidation fee.”.
The company’s financial position has been fragile for a long time. In fact, the coronavirus pandemic is just a fatal blow to the serious problems it has caused over the years. As of the end of fy2019, the latest accounts submitted by the company had to start the restructuring plan due to its negative own funds. I mean, he’s on the verge of bankruptcy. In addition, in September last year, it applied for a creditor pre-trial because it failed to guide the crisis.
According to the business registry, virtualum had an operating loss of 8.5 million euros in fiscal year 2018-19, a slight improvement from 12.4 million euros a year ago. The reason for the improvement is that the shops have begun to close: “although the turnover has decreased, mainly due to the decrease in the number of shops, the profit margin has increased, In particular, due to the organized closure of business areas with low profit margins and the strict control of operating costs, the operating costs have declined. The adjustment process is now being strengthened. The question is whether it will survive.
At the Labor Committee, they insist that imagining a crisis is nothing new. When Carrillo was acquired in 2017, the company had already lost money. “International expansion is the beginning of the end. When Federico Carrillo arrived, there was already a loss. Marta laiglesia, Secretary General of the CC OO Aragon Service Federation, explains that since then, imaginaum has been losing money every year.
It’s a dramatic case of 14 million euro debt accumulation, as the company said in the negotiations. There’s no doubt in reading the current position. The difference lies in sharing responsibility on the path taken. In the objective data, there is a shocking figure: from July last year to March next year, the labor force of about 270 workers will increase from about 30 to 30. Some things are hard to digest, and almost the entire store network is blocked. “The situation is disturbing and we are concerned about the progress of the closure. There are only two agents left, “legalesia added.
In the current negotiations, union representatives are trying to reduce the number of layoffs from 125 to 111. They stressed the need to explain to them the documents submitted. In particular, the competitive position of creditors, the refinancing agreement, the feasibility plan for business continuity, the salary payment in February and the implementation date of layoffs. “Imagination has to take on its own responsibility, not transfer it to the public coffers to pay for elfoghasa,” legescia said.
As negotiations continue, there will be new meetings in the next few days, and most of the shops on the pedestrian street have completely closed their shutters. The company believes that the partial closure will be reversible, although the fictional dream – and the dream of thousands of children – seems to be coming to an end.