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News
Garvey plays down administration
The Garvey Group has sent out a statement declaring it is "business as usual", following a report last week by the drinks business that its parent company, the Nueva Rumasa Group had gone into administration.
The group clarified its present situation, saying: “Despite the Garvey Group´s turnover increasing by over 30% last year, the company has had recourse to enter into temporary administration in order to safeguard the interests of its employees, investors and creditors, in order to ensure the future commercial viability of its wineries.”
Despite the criminal fraud investigation launched against Nueva Rumasa’s owners, the Ruíz-Mateos family, Garvey continued: “In view of the excellent sales figures over recent years the administrador presiding over proceedings has granted the Ruiz-Mateos family legal authority to continue managing all of their wineries.”
In particular, the company was at pains to emphasis its security in export markets, remarking that its “encouraging sales results, in the midst of a global recession, are due in large part to the program of international expansion undertaken by the Garvey Group during the last three years.
“2010 was a particularly important year when the Group cemented its international position and reputation. At present exports represent 67% of the Garvey Group´s sales.
“The Garvey Group´s eight wineries are functioning at full production capacity and will continue to do so. Domestic and foreign orders are being prepared and despatched without any problems.”
The group also denied that any firm decisions had been taken regarding job losses, asserting: “The Garvey Group has secure, healthy assets as well as sufficient resources to move out of temporary administration, thereby guaranteeing the future viability of the company.
“The feasibility plan presented to the administrators includes a provision for a reduction in staff, whose numbers are currently in excess of present requirements. To date, no agreement has been reached on staff reductions.”
Gabriel Savage, 20.06.2011