Algodonera Avellaneda Files for Bankruptcy After Sales Drop

Algodonera Avellaneda, part of the Vicentin group, has filed for bankruptcy after a 60% decline in sales. The company faces financial struggles due to import issues and labor conflicts.


Algodonera Avellaneda Files for Bankruptcy After Sales Drop

The company Algodonera Avellaneda, belonging to the Vicentin group, has decided to file for bankruptcy in court after registering a 60% decrease in its sales. The decline in revenue is attributed to the opening of imports and various labor conflicts that caused blockades and stoppages in production.

Acquired by Vicentin more than thirty years ago from the Eurnekian group, Algodonera Avellaneda is dedicated to the storage and processing of cotton in three plants located in Reconquista (Santa Fe), Gral. Pinedo (Chaco), and Bandera (Santiago del Estero). Although it previously manufactured for the Estrella brand, in recent years the company has focused on the textile industry, as well as in a lesser extent on personal care and cosmetic products.

The company was financially affected after committing as a guarantor in the restructuring process of Vicentin, combined with the decline in production and sales during the year 2020 due to the pandemic. Despite having prior credit lines with Banco Nación, by participating as a guarantor of Vicentin, Algodonera Avellaneda lost access to that financing during the bankruptcy process that began in 2020.

The bankruptcy case of Algodonera Avellaneda is in the hands of Judge Fabián Lorenzini of Reconquista, the same magistrate who has historically overseen the bankruptcy process of the large cereal company Vicentin.

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