Worten has started a restructuring process in Spain to ensure positive profitability in 2021. Within its measures, the Portuguese company has announced that it will sell 17 physical stores to MediaMarkt and close 14 other stores. Thus, Worten will be limited to physical sales in San Sebastián de los Reyes (Madrid) and the 15 stores in the Canary Islands.
The affected stores for this acquisition are those of Vigo, Talavera de la Reina, Ciudad Real, Roquetas de Mar, Torre del Mar, Marbella, Mijas, Seville, Melilla, Badalona, Lloret del Mar, Calafell, Playa D’Aro, Sant Antoni, Sant Boi , Vinaroz and Zamora.
The agreement with MediaMarkt includes the 270 employee transfer, which contributes to preserving 73% of the jobs corresponding to the current Worten workforce in Spain.
As explained by the Country Manager of Worten Spain, José Vieira de Almeida:
In the current context of transformation of the sector, accelerated by the pandemic, we have decided to carry out structural changes with the aim of guaranteeing positive operational results in Spain in 2021. We are aware of the exceptional work that all workers have done, to whom we deeply love grateful. It is a change that does not affect in any way the continuity or independence of our business.
For its part, Alberto Álvarez Ayuso, CEO of MediaMarkt Iberia Add:
The acquisition fits perfectly with our strategic goals of being the first choice as a trusted retailer for bespoke solutions in a technology driven world. The proposed agreement also reflects our clear commitment to the omnichannel model; these 17 new stores will boost our online sales with new delivery points and collection of orders on the web ”.
The transaction is pending approval by the National Commission of Markets and Competition of Spain and should be finalized in the first quarter of 2021.
Hard times for Worten
Worten has been going through difficult times for a long time and this restructuring plan will alleviate the poor results. Already in March the company notified the closure of stores and presented an ERTE for all its staff to assume the most complicated moments of the global pandemic in Spain, but also its already complicated business situation.
In fact, the losses come from afar. Already at the beginning of the year, we reported that Worten had been accumulating negative accounts since last 2018, already accumulating more than 300 million euros in losses until 2020.
Present in our country since 2008, the company would have managed to display up to 60 establishments throughout the entire territory, which have been drastically reduced by up to a third of the total in just two years; This has also involved a series of massive layoffs and employment regulation files that have already affected more than 200 workers.