The crisis is already affecting el Corte Inglés.

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In 2009 there was already talk that the English Court had lost money with its chain of supermarkets and some brands. The policy of the English Court was never compete on price, but because of the crisis and the fall in consumption, added to the search for tenders by the consumer, Isidoro alvarez, President of the company, had no choice but to enter the bidding war.

This bidding war is not made for the business model of the English Court, which is why a year later, rather than sell more with lower margin, ended noting a further decline of sales with a bottom margin.

According to the balance of accounts of the English Court, the company is going through its worst time, that while previously free of debts, now the situation has changed, and with their sales only covers about 30% of its short-term debt and 14% of its long-term debt.

This means that in case of not taking measures so far have not been required, such as expand into new markets or their output in the stock market to finance, we could have very harmful news for el Corte Inglés.

In principle one of the measures it has taken is extending the payments to their suppliers, so if previously paid for 3 months, it is now already paying for 6 months and some providers are considering does not sell this companybecause as it is evident, the crisis is for everyone and only very few companies could afford to maintain the gender on the street for 6 months.

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