The government has been alerted to 'irregularities' at the Alisuper chain of convenience stores as management struggles with cash flow, rent and suppliers.
As part of an old wage arrears agreement, which the Nogueira Group agreed to shoulder when buying the chain in 2012 for €26 million, quarterly payments must be paid to staff both present and past.
The groups insistence that workers come to Silves to collect their money has left many with an uneconomical journey costing more to travel than the amount owed.
Refusing to use bank transfers or posting cheques, the management is making it as hard as possible for workers to receive monies due, but this is but part of the problems facing the group whose bold investment was lauded by the then Minister for the Economy, Álvaro Santos Pereira, who said that it proved that "the Algarve remains a secure investment."
Dozens of workers in the Alisuper chain have not received the money to which they are entitled, nor have current employees received wages on time and in full as the dreaded ‘seasonality’ cripples the group’s cashflow.
Last week, the parliamentary group of the Communist Party questioned the Minister of Solidarity, Employment and Social Security about this situation which is leaving workers deeply concerned about their future.
The Authority for Working Conditions in Faro and Portimão both have inspected the company but no report has yet been disclosed, leading to accusations from the communists of 'abuse' by the company.
At the end of March the group owner José Nogueira admitted that the company was experiencing difficulties with existing debts to suppliers and wage arrears for hundreds of workers at its 49 stores, 43 of which are in the Algarve.
After insolvency proceedings in 2012, the creditors met and approved the payment of 20% of the compensation payable to workers, paid in quarterly installments over six years, starting eighteen months after the re-opening of the first store of Alisuper network. The liability for these payment was down to the buyer, Nogueira Group.
In March, suppliers to the stores were concerned and many had started to demand full settlement of their accounts before sending more stock. Many stopped supplying, with gaps appearing on shelves.
Nogueira took on the company’s debt in return for control but has been battling seasonality and relentless fixed costs, as did the previous management whcih is why it went bust.
In an interview with Expresso in March, José Nogueira did not admit the business was in trouble, but did say that Alisuper’s problems are being resolved, that the viability of the supermarket chain is not in question and that all wages are up to date.
Nogueira closed 18 of his newly acquired stores last winter to cut losses and the businessman from the north of Portugal said he regretted the 'indifference' with which the Government looks at his situation, as if expecting a bailout.
The final deal which Nogueira says had the ‘involvement’ of the Ministry of the Economy, was announced to the Algarve as a solution that would save jobs and boost investment, all the things that politicians like Álvaro Santos Pereira loved to announce on his rare visits south.
In March, Nogueira said that he was preparing an Alisuper expansion plan to cover other areas of the country in an attempt to develop a less seasonal business model. His time may be running out but on the plus side, the summer season is soon here and if Alisuper trades well in the face of its increasing oppositon, José Nogueira may have enough time to consolidate the group's finances or find a willing buyer.
Comments
Remember that all the Jumbo + Continente + Aldi + Lidls had to bung generously to originally set up but little of this money would have gone to rival shopkeepers - now failing to survive.
Note also, as you travel the country, that you will often find 1st generation Lidl's and Intermarche's that were set up to fail without suitable parking space or access - or in what became a dead area through municipal horseplay in re-routing roads. Then having to reopen somewhere better elsewhere. No doubt for another 'fee'.
Olhao's closed in March...