Abrupt closure and layoffs
The Pandanés bakery chain shut down its 25 locations this Friday and terminated approximately 150 employees, following a financial crisis that had already forced the company into preventive restructuring. The firm announced in the early morning hours that it had ceased operations and would seek its own bankruptcy. The previous Friday, the company had already closed two other branches, one on San Martín Avenue in Villa Crespo and another on Sanabria Street in Villa Devoto. Employees at those stores were told that rental contracts could not be renewed due to the cost of the premises.[S1]
A week later, the measure extended to the remaining branches. Workers received a WhatsApp message around 4 a.m. instructing them not to come to work. One affected employee told Clarín that the same message was sent to the 60 store employees and 100 plant workers, stating that the company was going bankrupt, that the numbers could no longer be sustained, and that they should not return. Employees were also unable to enter the stores to collect their belongings, as the locks had been changed and padlocks placed on the premises overnight.[S1]
During the day, the bakery workers' union visited the employees. According to the worker, labor obligations had also been accumulating in recent months. He stated that they had neither pension contributions nor health insurance paid for seven months. Pandanés had built its business on artisanal baked goods, with centralized production in a 1,700-square-meter plant. The company had reached 25 establishments and a workforce of about 150 people, between the stores and the Barracas plant.[S1]
Financial collapse and failed measures
The company's financial situation had already been exposed in its November court filing, when it entered preventive restructuring. In that document, it detailed that uncertainty, recession, inflation, and a significant increase in costs had caused an abrupt and persistent drop in consumption, exceeding 50% of the company's historical volume. In the same filing, Pandanés reported that it had accumulated rejected checks worth about $58 million. It argued before the court that the checks issued to meet its obligations exceeded its collection capacity.[S1]
The company also listed the measures it had implemented to try to reverse the situation, including cost optimization, renegotiation of rents, changing suppliers, expanding the product range, tax agreements, and operational reorganization. Despite these efforts, the company ultimately announced that it had found no alternative to continue operations. Fabián Castillo, president of the Federation of Commerce and Industry of the Autonomous City of Buenos Aires, said that closing a chain of that size is a decision that requires bearing various costs. He told Clarín that a company with 25 locations does not make such a decision overnight, that it is an enormous cost, and that maintaining a certain aesthetic and product line can be expensive.[S1]
Sector-wide sales slump
The closure of Pandanés occurred amid a contraction in sales across the sector. According to the Chamber of Bakery Industrialists (CIPAN), sales of traditional bread fell between 50% and 60%, while sales of pastries and bakery products dropped by 80%. The entity also noted that consumer purchasing habits have changed. They said that people no longer buy by the kilo, but rather by what their pocket allows.[S1]
