2024-01-18 22:25:04
The Buffalo Wings restaurant chain with 27 points might not negotiate with creditors due to its debts, as announced by the Superintendency of Companies. Despite the above, La República was later able to establish that, The debtor company, prior to the decision issued by the Superintendency of Companies, filed a request for suspension of the process (2023-09-035098)accompanied by labor creditors, financial entities and the National Tax and Customs Directorate, which to date has not been resolved by the entity.
What does this mean? The company, which has $26.5 billion in debt, will have to respond to the executive proceedings that creditors had initiated once morest Operadora de Franquicias de Colombia SAS (BW Buffalo Wings). Consequently, the restitution of the debtor’s assets will also begin due to delays in judicial and extrajudicial collections.
The company had begun its emergency negotiation of a reorganization agreement provided for in decree 560 of 2020, which began on September 8 of last year. Within the requirements of this procedure, it is decreed that once the debtor’s request is admitted, three months will be counted to negotiate and present the reorganization agreement for confirmation. However, this requirement was not met and now the company must respond.
The franchise from El Salvador has been in Colombia since 2009. The brand was brought by Edgar Llanos who traveled to Central America and then opened his first point in the food court at the Hayuelos shopping center.. The franchise belongs to Operadora de Franquicias de Colombia, who in turn are owners of Dos Chingones, with whom they wanted to compete in Mexican food.
Buffalo Wings is another case that adds to the list of chains that have attempted or entered into business reorganization, since last year it was also announced that Sierra Nevada also entered into this process with Supersociedades, But this was only the tip of the iceberg of a more serious problem in the sector, since the return of the consumption tax collection affected restaurants.
The Colombian Franchise Operator entered the 1,000 companies that invoiced the most in 2022, by then its operational income reached $68,511 million. They reported losses of $2,762 million, which had a variation of more than 1,000% and a decrease in their Ebit of 694.29%.
Its liabilities increased 7.74%, reaching 26,506 million, its debt increased 119.43%. The sector in general was hit by the country’s economic situation and the decline in consumption. The influx to restaurants dropped 40%.
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