Moviflor closes on day 1 and 950 leaves workers with wages … – Mad Money

Moviflor closes on day 1 and 950 leaves workers with wages … – Mad Money

Moviflor has over 1,400 creditors and a higher debt to 147 million euros, including the tax and social security

Company is present in Angola and Mozambique /> D. R.

The Moviflor stores will close “temporarily” from 1 October due to financial difficulties, announced yesterday the administration to managers of furniture chain. Caught by surprise, the workers accused the company of failing to pay wages stipulated in the Recovery Plan.

“The Management of Moviflor informs that given is not yet defined the evolution of the company against the need for investment, considering the difficulties and contingencies we face daily, the temporary closure decision was taken the facilities already from the 1st of October, “the statement said.

In the document, Catherine Remigio, who founded the furniture company for over 40 years, appreciates the effort and dedication of 950 employees that Moviflor to have in Portugal. The issue of wage arrears is unclear.

According to the Workers’ Union of Trade and Services (CESP), in late July the workers still had arrears of wages in May. For this reason, a working formulated in August, a bankruptcy petition. Source of Union reported earlier this month that compared to non-payment of wages, many employees suspended contracts and the stores do not work for lack of staff, especially in Coimbra, Aveiro and Vila Real.

Moviflor failed to meet the Special Revitalization Plan (PER) approved in December 2013, or reach agreement with a potential foreign investor, which has never been revealed. The breach of the PER, and especially the lack of payment of wages and compensation are “regrettable,” said the union Marisa Ribeiro speaking to Lusa.

The measures for the recovery of Moviflor passed by “strengthening financial structure with equity, amortization of liabilities, funding freed (cash flow) negative “media between 2013 and 2015 This reinforcement of equity would be achieved through in-kind donation of property held by the shareholders, valued at about 1 EUR 1 million. Was stipulated and approved by 80% of creditors who would proceed to the dismissal of 320 employees and the closure of five to six stores, among the 24 existing in the country.