The centenary company Embotits Espina has filed for bankruptcy with a debt of 14 million euros. Unable to meet its payments due to the pandemic and inflation, the company owes 7 million to various financial entities and another 7 million to different suppliers in the meat sector.
“During the last few years, we have maintained the usual investment in equipment but we have not been able to take on the covid crisis and the subsequent rise in energy and raw material prices,” says Juli Espina, a member of the family that founded the business in 1911 in the city of Vic.
The bankruptcy has been presented before the Barcelona justice system along with an offer to purchase the production unit. Under this special formula, contemplated in article 224 bis of the bankruptcy law, the objective is to be able to continue the business as soon as possible.
“A meat company in the same region of Osona is interested in taking over the business as long as an ERE is applied to fire 40 of the 80 workers on staff,” says Arancha Corbal, from the Barrilero law firm, which has been designated as bankruptcy administrator to supervise the process.
This company's offer may not be the final one, since a deadline has now been opened for other companies to present theirs. The Barcelona justice system will decide which is the best and, if there is no other, it will study whether the proposal presented by this Catalan company is advantageous for the competition. If it goes ahead, the creditors would be left unpaid, as established by the bankruptcy law.
“We hope that Espina can continue its activity, jobs will be saved and the brand will be maintained, since it has a centuries-old value in the sausage sector,” says Corbal. Born 113 years ago, Espina stands out in the market for the traditional production of pork, turkey and chicken sausages. In recent years, the company has also delved into vegan food by launching a line of sausages made from vegetable protein that imitates the flavor and texture of animal meat.
The company's turnover was 22 million euros in 2022, the last year with results available in the Commercial Registry. In that year the workforce was 115 people and the company recorded losses of one million euros.
