At noon this Thursday, the shares of the department store chain fell 19% to 27 cents, a price that was close to its all-time low.
This week, Femsa reported that due to the lack of cash flow, to face the payment of the operation expenses -including the rent of commercial premises, the payment of software licenses, as well as the hosting of Information Technology infrastructure -, it has been necessary to close 99 stores, to conclude December 2022 with 69 branches operating in Mexico, with the risk that the number of closed stores will continue to increase.
In addition to the cash flow problem, Femsa also faces the lack of credit lines for working capital and the lack of a financial arm that allows the granting of credit to its clients, this being the main business model, for which ” Given the limitation to obtain new resources, the company is at risk of not being able to maintain its operation,” the firm warned in a statement sent to the Mexican Stock Exchange (BMV).
In August 2020, Grupo Famsa filed a bankruptcy request, which concluded in February 2022. Since then, its share price has plummeted by more than 80%.