Monday, September 22, 2014

Venezuela: Clorox de Venezuela SA to Liquidate Assets Out of Fiscal Necessity

According to The Latin American TribuneThe Clorox Company announced on Monday (September 22) that it has suspended operations in Venezuela in the face of operational restrictions, economic uncertainty and supply interruptions.

The Oakland, CA-based maker of cleaning products said its subsidiary in the Andean nation, Corporación Clorox de Venezuela SA, is in the process of trying to sell off its assets.

“This is a very difficult situation for our company,” Clorox Chairman and CEO Don Knauss said in a press release. “We are extremely proud of the men and women who did their very best to operate our business in the face of significant economic challenges. 

We are working to support them through this transition.”For nearly three years, Clorox de Venezuela has had to cope with rising production costs amid stringent controls on retail prices, the company said.

Clorox de Venezuela’s repeated requests to the government to raise prices finally obtained a response but, according to the company, the increases granted were far from sufficient to render the subsidiary viable.

Clorox, a multinational with some 8,200 employees around the world and revenues of $5.6 billion last year, commenced operations in Venezuela in 1990.

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