Justo & Bueno in Colombia will close stores after not receiving resources from Chinese firm to pay off debts

Photo: Justo & Bueno market. By: EEIM. Source: Wikimedia.

The discount and low-cost chain Justo & Bueno was awaiting a financial injection from the Chinese firm JF Capital, with which it could have canceled its debts and overcome the crisis. May 10 had been set as the date for receiving the stipulated US$628 million (COP$2.4 billion). However, on the evening of May 10, the Justo & Bueno chain informed that it regretted that the new owners had not been able to meet the agreed deadlines and, in view of the fact that there were no reports or payments, announced: “We consider our operation unfeasible and will preemptively close our stores and distribution centers.”

The idea was to finance debts and payments to suppliers and to expand into countries such as Mexico, Ecuador and Argentina. However, in addition to not receiving payments, to date, Justo & Bueno has not received a report required by the delegated judge of the Superintendence of Corporations to explain the structuring of the proposed business, the mechanism, the amount of the operation and a capitalization plan.

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La República: Justo & Bueno cerrará tiendas al no recibir recursos de firma china para pagar deudas.