Court grants 6 months to +KOTA to restructure its debt
The Mexican retailer recently filed an insolvency proceeding and has been given time to readdress the situation to avoid closure.
The company is only allowed to perform payments that are strictly essential for the daily operations of the business, mainly staff pay slips and suppliers. The process also opens the door to restructuring any credit the company has with banks.
Lawyer José Antonio Sagredo from GLZ Abogados, who represents the company, highlighted to GlobalPETS that bankruptcy processing does not mean the company will end its business. “It means that it is in the process of economic restructuring. If all goes well, the company will be able to exit these complex situations.”
The retailer intends to keep its store network open during the period. Before the pandemic, +KOTA had more than 300 stores nationwide. Today, the amount is, significantly, down to 90.
If the situation is not resolved after this period, the court may grant another 6-month extension before the company is automatically in bankruptcy.
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