Selina (now “Sociatel”) shut down today in Palermo Soho

[Stafford]

Maybe the workers can take over and operate as a Cooperative, like it's happened in previous hotel bankruptcies.

That would be cool. I remember that happened with factories too in the early 2000s. While management is hiding, they did send over a security firm. The guards are blocking access to rooms and the kitchen. But allowing them to stay in the lobby and keeping the front door open. Excellent the workers can be in there. But curious why the guards haven't been instructed to clear out the lobby and lock the doors.

 

[Quilombo]

Maybe the workers can take over and operate as a Cooperative, like it's happened in previous hotel bankruptcies.

When I first moved to Argentina in the early 2010s I remembered reading about Hotel BAUEN on Callao. Something similar happened and the workers said fine, we'll run it, and did from 2003 to 2020 (COVID was the final death blow).

As Frank said, these LLCs/REITs/shell corp schemes let companies basically screw employees whenever there's a bankruptcy, so I'm of the opinion that a long overdue reform around the world (not just in Argentina) is needed where employees are first in line for bankruptcy payouts, and secondly, that in the event of a bankruptcy where there is no intention by the owners/shareholders to restructure things, administration of the business should be transferred to a worker cooperative which receives Chapter 11 like protections and at minimum a year to try and clean things up.

Maybe because it's Argentina and so much goes wrong so often economically, but I've heard of so many cases of businesses just closing like this and telling the former employees to pound sand. Also, it's not even bankruptcy but rather fraud as unlike with goods purchased on credit when a company is first setup, there was likely never the intention to pay these peoples' wages. Argentines are paid 13 times a year, so are they going to try and say a month ago they didn't know how bad the cash situation was? It's textbook fraud/theft akin to hiring someone to paint your house and then saying "Oops, I have no cash, oh, and I'm moving and the bank is foreclosing" when they finish.

 

[ArgentinaVet]

Wow the participants in this thread appear to be mouthpieces for the Communist Party of Argentina.

Imagine you own a hospitality sector business that has descended into bankruptcy as a result of the ongoing economic crisis in Argentina, overvalued FX rate which killed incoming foreign tourism and labor/tax laws that are a nightmare to deal with. How dare you get tired of losing money and decide to cut your losses and shut down the business THAT YOU OWN !!! This isn't a government or union owned hotel, this a PRIVATE BUSINESS that lives or dies based on its profitability.

 

[Quilombo]

Wow the participants in this thread appear to be mouthpieces for the Communist Party of Argentina.

Imagine you own a hospitality sector business that has descended into bankruptcy as a result of the ongoing economic crisis in Argentina, overvalued FX rate which killed incoming foreign tourism and labor/tax laws that are a nightmare to deal with. How dare you get tired of losing money and decide to cut your losses and shut down the business THAT YOU OWN !!! This isn't a government or union owned hotel, this a PRIVATE BUSINESS that lives or dies based on its profitability.

The Communist Party of Argentina pays me to post online in English to make gringos mad. But hey, at least their checks clear unlike Sociatel's.

 

[redlobster]

Maybe the workers can take over and operate as a Cooperative, like it's happened in previous hotel bankruptcies.

That would be cool.

So if you're a pilot and get fired, can you just take a plane and claim it's yours? Or is this logic reserved only for the hospitality industry?

I'm always amazed at how many communist sympathizers there are among people who grew up on the right side of the Iron Curtain.

 

[cortazar]

Wow the participants in this thread appear to be mouthpieces for the Communist Party of Argentina.

Lol.

Imagine you own a hospitality sector business that has descended into bankruptcy as a result of the ongoing economic crisis in Argentina

This is completely wrong. Selina was an international company that went bankrupt because it because it grew too fast and acquired massive debts that it couldn’t pay. At one point it had a 1.2 Billion dollar valuation on the NASDAQ. If anything, its failure is a result of low interest rates resulting in massive over-leveraging. Or of perhaps of another classic story of finance: hubris resulting in a misunderstanding of risk.

Now another company bought it out of insolvency and is looking to make a profit on its assets. I don’t know anything about their duties to the fired workers, but it’s not unreasonable for the workers to expect that their contractual obligations are fulfilled. However, I’d be pessimistic, because these type of firms often devote a lot of money and effort towards shaking off legal liabilities. Sometimes its a major point of strategy.

 

[FrankPintor]

Wow the participants in this thread appear to be mouthpieces for the Communist Party of Argentina.

Imagine you own a hospitality sector business that has descended into bankruptcy as a result of the ongoing economic crisis in Argentina, overvalued FX rate which killed incoming foreign tourism and labor/tax laws that are a nightmare to deal with. How dare you get tired of losing money and decide to cut your losses and shut down the business THAT YOU OWN !!! This isn't a government or union owned hotel, this a PRIVATE BUSINESS that lives or dies based on its profitability.

Oh really...

It's one thing for a company to say to its employees, hey, we can't do this anymore, here are your pink slips and severance pay, with social security contributions up to date, we'll wind up the company and pay creditors as best we can.

It's quite another to secretly stop paging social security, close the premises, contract security to intimidate the employees, and do a runner.

You do understand the difference, I hope?

 

[devilclam]

The Selina hotel on Guatemala and Thames (now calling itself “Sociatel”) suddenly shut down this morning. Workers showed up and were told the place is closing, effective immediately. No warning, no severance, nothing.

I'm not entirely shocked. Selina had WeWork vibes but as a hotel group. I went to a Selina hotel in Rio de Janeiro after seeing all the sexy marketing and it was gross. Reminded me of my co-op in college but with bed bugs.

I don't think we need to be sympathetic to the poor, humble business owner. Probably founded by a couple of trusties that liked to party.