By: Chris Graeme
Europe’s SECOND largest retail factory outlet for designer brands is in danger of closing its doors three years after its grand opening.
Freeport at Alcochete in Sétubal near Lisbon, was trumpeted as a major contribution towards re-generating the south side of the River Tagus opposite Parque das Nações in June 2004, providing thousands of jobs in the 75,000sqm area, with its 200 shops, 30 restaurants, cafés and 21-screen state-of–the-art Multiplex cinema.
Now, the second largest retail shopping park in Europe, after Bluewater Park in the UK, may be forced to file for bankruptcy in the coming week.
Solution
According to a report in the daily Portuguese business publication Jornal de Negócios quoting a lawyer representing several shopkeepers, the retail companies have applied to a court to ask for a bankruptcy order.
The Associação de Lojistas do Freeport, Freeport association of shopkeepers, has demanded that a meeting be scheduled for February 12, in order to try and find a solution for the economic difficulties that the retailers are facing, during which they will present a number of proposals, including the lowering of rent.
The retailers complain that in 2006, the number of visitors to Freeport fell by 25 per cent and accuse the outlet’s administration of having failed to fulfil what was stipulated, namely with respect to leisure amenities, which had been presented at the beginning of the project, as a major factor in attracting visitors.
The association also accuses Freeport administration of incompetence, having done nothing to turn around the fall in visitor numbers and of “not having shown the capacity in promoting Europe’s largest shopping outlet”.
They also complain that the high-tech, state-of-the-art Multiplex cinema has been closed since December 2005.
Freeport’s administration has so far denied that the shopping outlet is on the brink of bankruptcy, announcing that there were “plans to significantly invest in the project”.
The company’s Director-General, Lestyn Roberts has “categorically” refuted the bankruptcy claims, adding that she was perplexed and disappointed at the rumours.
“This news isn’t true and seems like a conspiracy promoted by certain individuals, who are trying to destroy the good will and reputation that the company has built up in Portugal,” she said.
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