bajabound2005
Ultra Nomad
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Registered: 10-15-2005
Location: Punta Banda, BCN
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Mood: words cannot describe...
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Comercial Mexicana/Costco Bankruptcy?
(Same company owns Costco Mexico...)
Mexico retailer Comerci seeks bankruptcy protection
Thu Oct 9, 2008 6:54pm EDT
MEXICO CITY, Oct 9 (Reuters) - Mexican supermarket operator Comercial Mexicana, unable to make debt payments because of a recent decline in the peso
currency, said on Thursday it has asked a court for bankruptcy protection against creditors.
Comercial Mexicana (COMEUBC.MX: Quote, Profile, Research, Stock Buzz), or Comerci, said it would not pay 400 million pesos in debt as it enters the
restructuring process.
Comercial Mexicana Suspended From Mexico Trading After Decline
By William Freebairn
Oct. 9 (Bloomberg) -- Controladora Comercial Mexicana SAB, the owner of supermarkets and Costco stores in Mexico, was suspended from trading by the
Mexican stock exchange following a 45 percent decline yesterday.
The exchange said the company was suspended from trading while it responds to a request for information. Comercial Mexicana said yesterday it is in
talks with creditors after the cost of its foreign-currency debt rose as the peso dropped this week.
Friends don't let friends drink white zinfandel.
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thebajarunner
Ultra Nomad
Posts: 3718
Registered: 9-8-2003
Location: Arizona....."Free at last from crumbling Cali
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Mood: muy amable
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Bummer!!
CM is my fave place to shop in Ensenada,
hope they weather this economic storm
(Heck, hope we all weather it....)
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Hook
Elite Nomad
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Location: Sonora
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Isnt this the Mega chain, too?
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Cajones
Banned
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Registered: 9-13-2008
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Yeah, I read that in the Mexican papers this morning. They stopped trading of the stock on the Bolsa. What really caused the problem is Comerci has a
lot of dollar-denominated, or dollar-linked debt. When the peso went from 10 to 13, they suddenly owed 30% more.
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BMG
Super Nomad
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Location: La Paz / Bahia Asunci�n / Away from home
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| Quote: | Originally posted by Hook
Isnt this the Mega chain, too? |
"Controladora Comercial Mexicana, CCM, is one of the largest Mexican food retailers, with revenues of US$5.05 billion for the last twelve months (LTM)
ended June 30, 2008. At the same date, CCM operated a total of 217 stores, the majority of which are located in Central Mexico (including Mexico
City). CCM operates seven store formats: Comercial Mexicana, a service-oriented supermarket; Mega, a hypermarket; Bodega and Alprecio, value-priced
supermarkets; Sumesa, a value-priced neighborhood supermarket; Costco, under a joint venture with Costco Wholesale Corp. and City Market, a high
purchasing power segment supermarket. In addition, CCM operates a chain of 73 family-style restaurants."
Market Watch
I think the world is run by C- students.
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bajajudy
Elite Nomad
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Location: San Jose del Cabo,BCS
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Some of you may remember on an earlier thread celebrating the fall of the peso, I said that it would hurt the Mexican people and was scoffed at.
Well now if costco and mega go under, what does that do to all of their employees. A weakened peso is not good for the people because the inflation
will eventually catch up with them....everything WILL cost more.
My cost of goods sold just went up 20% on all of the outstanding facturas that were written at 11 to 1. If I get paid and have to change the pesos
into dollars to pay my publishers....I have, in effect, lost 20% of my profit margin which was low to begin with due to the nature of the book biz.
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Woooosh
Banned
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| Quote: | Originally posted by bajajudy
Some of you may remember on an earlier thread celebrating the fall of the peso, I said that it would hurt the Mexican people and was scoffed at.
Well now if costco and mega go under, what does that do to all of their employees. A weakened peso is not good for the people because the inflation
will eventually catch up with them....everything WILL cost more.
My cost of goods sold just went up 20% on all of the outstanding facturas that were written at 11 to 1. If I get paid and have to change the pesos
into dollars to pay my publishers....I have, in effect, lost 20% of my profit margin which was low to begin with due to the nature of the book biz.
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Saying that Mexicans will suffer because Commercial files bankruptcy is a stretch. All they will do is write off their dollar debts and life will go
on at the stores. Just like life goes on at United Airlines or any other bankrupt company that resturctures it's debt.
\"The only thing necessary for the triumph of evil is for good men to do nothing\"
1961- JFK to Canadian parliament (Edmund Burke)
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Hook
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WHAT ABOUT US AMERICANS WHO WILL SUFFER IF OUR COSTCO'S GO UNDER !!!!! 
Woosh, you are heartless..................
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bajajudy
Elite Nomad
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Registered: 10-4-2004
Location: San Jose del Cabo,BCS
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| Quote: | Originally posted by Woooosh
Saying that Mexicans will suffer because Commercial files bankruptcy is a stretch. All they will do is write off their dollar debts and life will go
on at the stores. Just like life goes on at United Airlines or any other bankrupt company that resturctures it's debt. |
I give up
I still stand by the Mexican people suffering as a result of the devalued peso.
It seems a stretch to me to believe otherwise.
Hook
You are right on that....
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Bruce R Leech
Elite Nomad
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Mood: A lot cooler than Mulege
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Bajajudy you are right on.
Bruce R Leech
Ensenada
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Woooosh
Banned
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The world is about to suffer- big time. Mexicans will get out easy by comparison.
\"The only thing necessary for the triumph of evil is for good men to do nothing\"
1961- JFK to Canadian parliament (Edmund Burke)
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bajaguy
Elite Nomad
Posts: 9247
Registered: 9-16-2003
Location: Carson City, NV/Ensenada - Baja Country Club
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Mood: must be 5 O'clock somewhere in Baja
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| Quote: | Originally posted by Hook
WHAT ABOUT US AMERICANS WHO WILL SUFFER IF OUR COSTCO'S GO UNDER !!!!!
Woosh, you are heartless.................. |
Gonna miss my COSTCO Choco Flan pies!!!!!!!!
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