Product details

Carlos Alberto de Jesus was hired by Fabricato's Board of Directors to implement a strong restructuring plan that would allow the company to become viable in the medium term. Factors beyond the company's control, such as the revaluation of the Colombian peso, the growth of the Chinese textile industry exports, the smuggling of textiles that have flooded the Colombian market, money laundering, and the stock market bubble created around the price of Fabricato’s share, seemed to have jeopardized a growth strategy underpinned by the export of high-end threads and fabrics. The DeLima group, which had become the company’ majority shareholder upon receiving Fabricato shares in payment, after the Interbolsa bankruptcy proceedings, had made explicit its intent of not injecting additional resources into the business. For this reason, any recovery strategy would have to be financed through internally generated funds and through the highly reduced suppliers’ credit. If Carlos Alberto were to be unable to implant a rescue plan under these restrictive conditions, the company would have to enter into liquidation.