Fighting to survive

Around 500 employees of the Algarve-based Grupo Alicoop, which owns the Alisuper supermarkets among others businesses, risk losing their jobs unless two banks give the green light to help fund a rescue plan.

Despite BCP bank agreeing to finance part of the 5.5 million euros needed to start the company’s rescue plan, the future of the group now depends on the green light from the remaining two banks which the group is indebted to, Caixa Geral de Depósitos and BPN.

A meeting to discuss the future of the group was due to be held on Wednesday, with today (Friday) being the deadline for the rescue plan to be submitted to Silves court. Following the group’s insolvency announced in August, employee wages have been paid for six months by the Fundo de Garantia Salarial, salary guarantee fund, which ended in January (see the Algarve Resident edition November 20, 2009).