SanCor in Intensive Care: From Unquestionable Leader to the Brink of Bankruptcy
Source: dairynews.today
Once a leading dairy cooperative, Argentina's SanCor now faces dire financial troubles, struggling with over $400 million in debt and slashed production, as it searches for a financial lifeline to prevent an unprecedented business collapse.
SanCor, the historic dairy cooperative in Argentina, is teetering on the brink of financial collapse, with a monumental debt exceeding $400 million.
The cooperative's production levels have plummeted to historical lows, forcing plant closures and employee layoffs in a desperate bid for survival. During its zenith, SanCor processed up to 4 million liters of milk daily, a stark contrast to the current output of just 70,000 liters. This decline underscores the severity of its crisis.
The company's situation has deteriorated rapidly, but signs of distress have been evident for years. A significant liquidity crunch has led to accumulating debts with suppliers, banks, and employees. In an attempt to stave off bankruptcy, SanCor dismissed 300 employees in January, citing 'force majeure,' and sought creditor protection in February.
Efforts to secure private investors have been ongoing, but confidence issues and payment delays have hindered attracting fresh capital. Some experts propose that converting SanCor into a private entity, inviting investors, could be the cooperative's last chance at survival.
The cooperative's production levels have plummeted to historical lows, forcing plant closures and employee layoffs in a desperate bid for survival. During its zenith, SanCor processed up to 4 million liters of milk daily, a stark contrast to the current output of just 70,000 liters. This decline underscores the severity of its crisis.
The company's situation has deteriorated rapidly, but signs of distress have been evident for years. A significant liquidity crunch has led to accumulating debts with suppliers, banks, and employees. In an attempt to stave off bankruptcy, SanCor dismissed 300 employees in January, citing 'force majeure,' and sought creditor protection in February.
Efforts to secure private investors have been ongoing, but confidence issues and payment delays have hindered attracting fresh capital. Some experts propose that converting SanCor into a private entity, inviting investors, could be the cooperative's last chance at survival.
