Yoma tannery in difficulties

The Argentinian tannery Yoma SA have halted production and their continuity is looking doubtful. On September 23, the Yoma family, owners of the tannery stated that they would step aside from the company's management. The announcement was made not by the family but by the factory manager Roberto Perino. The company is in Chapter 11 and on September 28 the judge leading the case intervened, nominating four official receivers to take control. Yoma ceased buying in skins at the end of July and since then cheques given to their suppliers have bounced. The company attribute the difficulties to problems in the market and the Argentinian state's failure to repay taxes. In this period, the company's exports declined. Yoma, who employ 1,500 people, are the biggest source of employment in the area and closure would present serious social problems to the region. The Argentine government has explained that it has not repaid the tax as there is a judicial order forbidding it. The order is in reference to a debt that three state banks have been trying to recover from Yoma for the last seven years. According to press reports the debt currently stands at US$ 280 million.