Adolfo Dominguez delays payments due to insufficient cash flow

Spanish fashion retailer Adolfo Domínguez is currently grappling with financial difficulties, as revealed by the company's half-year financial results. The company closed the first half of the year with losses of 8.79 million euros, a significant setback compared to the 78.58 million euros in sales during the same period last year.

This decline in sales has resulted in losses that are double the same period last year for Adolfo Domínguez. The company's management has decided to take action, announcing a restructuring plan focused on internationalization. As part of this plan, Adolfo Domínguez has decided to stop showing at the Cibeles fashion fair and instead invest in expanding stores abroad.

Adolfo Domínguez currently operates a network of 710 stores, with 225 of these located outside Spain. The aim of the company committee is to prevent Adolfo Domínguez from filing a collective dismissal (ERE) application. Employees of the company will receive half of their bonus now and the other half in February, although the reason for the delay in the bonus payment has not been disclosed.

The company's restructuring plan also includes a focus on its workforce. Adolfo Domínguez has an average workforce of 2,300 employees. However, no further information about the reasons for the losses or the state of the company is provided. The institution that decided Adolfo Domínguez should give up his presence at the Cibeles fair and instead invest in expanding stores abroad was the company's management.

It is important to note that no new information about the company's liquidity issues, the actions taken to address them, or any reasons for the losses is provided in this report. The company has not disclosed any information about the distribution of the bonus to employees or the prevention of a collective dismissal (ERE) application.

Despite the challenges, Adolfo Domínguez remains committed to its mission of creating high-quality, sustainable fashion. The company's restructuring plan is a testament to its resilience in the face of adversity, and it will be interesting to see how the company navigates these difficult times.