There already had been a trimming of the Moviflor workforce by 200, but today’s news that a further 325 are to lose their jobs signals the end of the Moviflor operation in its current form.
The company entered in an administrative agreement, or Special Recovery Plan (PER), that was agreed in the Commercial Court of Lisbon on in December 2013 while it tried to come to agreement with its creditors and devise a plan to rescue the furniture and furnishings business with branches in the Algarve and the rest of the country.
Moviflor management sent an email to inform workers that the company will 'temporarily close its remaining shops' as from 1 October.
Union rep Marisa Ribeiro commented today, "The workers are concerned about their situation," and claims that the terms of the Special Recovery Plan are not being followed or fulfilled.
Last July, the union pointed out the failure of the company to follow various of its agreements as defined in the Special Recovery Plan as workers had not received any money in respect of overdue wages or indeed currently due wages as agreed by the Lisbon court.
In addtion to being stiffed for back wages the workers did not get paid for staying on with a high degree of loyalty.
In fact the union claims that not a single payment to workers has been made under the terms of the PER which stated that regular payment of wages had to be made.
The Moviflor website now has a holding notice and it safely can be assumed the business has closed.
