Pili Carrera files for insolvency

Spanish childrenswear brand Pili Carrera filed an insolvency petition with the Commercial Court of Pontevedra on Friday after being unable to “face the obligations contracted with creditors before the agreed deadlines” amid a “complex and competitive environment”.

In a press release, the clothing firm said it was a “responsible” decision after having tried in recent months to “face the full amount of payment commitments by various means, without any delivering the expected result”.

So now the company is trying to outline a financial viability plan for the short term and agree on a payment strategy with creditors, an agreement it hopes will be “the solution for the continuity of the company and its jobs”.

Pili Carrera reiterated the commitment to its customers, own store network, franchise partners and retail establishments in Spain and abroad. “This commitment will see us continue to bet on a manufacturing model made in its premises in Mos (Pontevedra),” said the company.

The Galician brand has a presence in 16 countries around the world with more than 800 stores. International markets account for 38% of its sales. The children’s fashion company ended 2017 with turnover of 7.6 million euros ($8.8 million) and losses of 107,000 euros ($125,100).