Spanish Paco Herrero, a shoe factory specialized in Women’s footwear segment, is very close to bankruptcy. The company, founded in 1955, submitted an application for voluntary bankruptcy of Paco Herrero and Paco Herrero Export enterprises.
Export is not enough
In the last few years, the shoe factory, based in Elda, had been focusing its efforts on exports to offset dropping sales on the Spanish market. The group’s goal was to get to export two thirds of their production. They failed though. Things got worse and worse: at the end of December 2018, Paco Herrero (one of the two companies that went bankrupt) financial statements showed a very big loss, 1.34 million euros.
The founding family’s third generation, composed of Joaquín and Maria Belén Puche Herrero (brother and sister), was currently in charge of the Spanish footwear group. According to financial data provided by Registro Mercantile, Paco Herrero company’s overall revenues had decreased by 8.3%, therefore reaching 1.1 million euros. At the end of 2018, company’s losses amounted to 1.72 million euros; 68% of such debt would be due in a year.
Picture taken from pacoherrero.es