Recently, it was announced that the Sierra Nevada Group, known for its famous and beloved hamburger chain with the same name, was admitted in the process of business reorganization. This due to that has liabilities with more than 90 days past due for a value of 2,013 million pesos.

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The pandemic, the war in Ukraine and high inflation played a fundamental role in the increase in its production costs due to the increase in prices that products showed like potatoes, meat and even wheat.

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This, added to the rise in interest rates and the problems they had to pay the consumption tax, the problems with the Dian and with the Banks and built the perfect scenario in which Debt began to accumulate and ultimately led to the decision to reorganize.

Sierra Nevada Burgers.

Photo:

Taken from Sierra Nevada Burgers

It is necessary to remember that this process intends, through an agreement, preserve viable companies and normalize their commercial and credit relations, a measure that is seen by the founder of Sierra Nevada, Emiliano Moscoso, as an opportunity to reinvest and get ahead.

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And in fact, There are already several strategies that the company is advancing to achieve its objectives and pay its debts. In an interview with EL TIEMPO, Moscoso explains in more detail what they are about.

Emiliano Moscoso talks about what the company is doing to pay debts.

Photo:

sierra nevada tomato

What is Sierra Nevada doing to pay its debts?

One line that is being worked hard is sales. The first thing is that all the stores that we have open are already giving operational balance. mywe are working on the event line. We use the kitchens that we close to attend events, this is working very well.

We have a job that we are carrying out with Rappi also to look for growth on delivery platforms. We are working very hard on the whole marketing thing. We set up a new company in which we ourselves are doing the marketing, with which we hope to increase sales by 20 percent on our face-to-face channels.

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It is called MOZKO, a business unit that will provide marketing services for both Sierra Nevada and other clients, but very focused on sales growth. We are working on costs, in renegotiating costs with suppliers and rent. Seek cash payments and cost reduction.

How do you see the disposition of the suppliers?

There is everything, especially the smallest suppliers have understood much more, but in general there is a good climate. I am very grateful to all providers. There has been a lot of understanding of the subject and a lot of help. Even with several of them we are looking for strategies to lower prices.

We are also expecting some costs to drop for them as well, let’s say that inflation has started to subside, but we are betting on achieving cost improvements. We are working with a cost of sales of 45 percent and we need to get it below 40 percent.

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Have you spoken with Banks and Dian to renegotiate the debts?

Banks we are pending. The banking sector has always helped us a lot. We have a very good relationship with banks and the idea is to have their support and of course face all the obligations.

Regarding the Dian, let’s say that the next negotiations that are coming we will see what we achieve. It is very important to have their support to be able to move forward, which is who we really have the problem with. The first thing is to catch up, to be able to pay the current consumption tax and from there you can start to deal with old debts.

Have you looked for strategic partners?

It is a family society, but we are always willing to listen. What Sierra Nevada is about is working with small producers, working with a population that is difficult to hire. What is not negotiable are the funds or investments that do not have a social interest.

We are open, but for us it is very important that this approach be maintained. They have to be very aligned. If we eventually receive some kind of injection, it has to be people who are very aligned with the essence of what Sierra Nevada is.

What can we expect from the company?

Ingenuity, desire and love for Colombia and for the people, that will continue to happen and projects, fun ideas, out of the box will surely come. We are going to continue surprising and amusing our public. Humor, let’s say that it is something that has always been present within the brand and we will continue. We hope we can recover in five years.

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JUAN DAVID CANO LOPERA
SCHOOL OF MULTIMEDIA JOURNALISM EL TIEMPO
ECONOMY WRITING

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