Carsa S.A., owner of Musimundo, declared bankrupt

The Civil and Commercial Court No. 23 of Resistencia has decreed the bankruptcy of Carsa S.A., the company that operates the historic Argentine appliance retailer Musimundo. The ruling, issued by Judge Fernando Luis Lavenás, nullifies the preventive reorganization process (concurso preventivo) that the company had initiated in July, citing evidence of insolvency.

The company faces a massive debt totaling approximately $63.5 billion, in addition to roughly $3.06 billion in bank liabilities. Banco Nación is listed as a primary creditor, with a debt of about $1.549 billion.

Prior to the bankruptcy, Musimundo attempted to restructure through a failed negotiation with On City to transfer 45 branches. The financial crisis has already led to significant operational downsizing, including the closure of 20 stores across Chaco, Formosa, Corrientes, and Misiones, resulting in more than 100 job losses and reports of unpaid wages and indemnities.