The Venca platform has filed for bankruptcy due to strong competition from other companies – such as Temu and Shein – in the online sale of fashion, electronics, cosmetics and home furnishings.
The company, based in Vilanova i la Geltrú, accumulates debts of 7 million euros against multiple product suppliers. “The tough Asian competition that we have had to face in the last year has led us to present a tender. We hope to reach an agreement with creditors or sell the production unit to another company,” defends Jordi González, general director of the company Digital Lola Commerce, which has operated the Venca platform since 2017 when a management team bought the business from the former owner, the French group 3SI, which in turn belongs to the German group Otto.
The bankruptcy is administered by the Barcelona firm RCD, which has been appointed by Judge Alfonso Merino, head of commercial court number 4 of Barcelona. The business activity continues and the company ensures that it normally attends to its commercial operations, such as product supply, delivery service and customer service.
According to González, the company’s project has value since Venca is a historical brand linked to commerce and great offers. It was founded in 1979 as a catalog company and over the years it abandoned this activity and became a marketplace where you can find products at very discounted prices.
According to the manager, the company records an annual turnover of 20 million euros and employs around 150 people. The staff is dedicated to the development of the platform, the management of logistics activity as well as the design of the products. González explains that 70% of its catalog is its own brand while 30% comes from third-party brands. “We have a network of suppliers in Asia and Europe,” comments the manager, who emphasizes the strong Asian competition that has cut short the years of good prospects brought by the coronavirus pandemic.
Four years ago, the Catalan company already experienced a reorganization of its operations that involved the dismissal of 68 people through an Employment Regulation File (ERE). Then, the ownership decided to close the division that was dedicated to printing physical catalogs and the one that specialized in clients from the corporate world. The Vilanova i la Geltrú company wanted to focus on online growth until a year ago it encountered strong competition from the large Asian internet giants.
