Chilean Retail Chain Corona to Close All 50 Stores After Reorganization Fails
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Santiago, Chile – chilean retail giant Corona, a fixture in the country’s department store landscape for over 50 years, is preparing to close all 50 of its stores nationwide on July 10, 2025. The closure follows a failed attempt to reorganize the company’s finances and avert bankruptcy, impacting nearly 2,000 workers. The company announced the impending closures to its employees after a reorganization agreement with creditors fell through [[1]].
Corona’s Final days: Clearance Sales and Store Closures
In a bid to generate cash before the final shutdown, Corona has launched a massive clearance sale, advertising items for as low as 5,000 Chilean pesos (approximately $5 USD) on its Instagram account. Diario Financiero reports that this fire sale is a last-ditch effort to improve liquidity before the final closure date.
Did You Know? Corona’s roots trace back to 1955,when it was founded by Leonard Schupper,an immigrant from the Netherlands.
Financial Troubles and Failed Reorganization
Corona’s closure comes after a second judicial reorganization process. While the company successfully navigated a previous reorganization in 2022 and repaid its debts,it subsequently struggled with liquidity issues exacerbated by the COVID-19 pandemic. The company’s liabilities reportedly reached approximately $67 billion Chilean pesos, with major creditors including Penta, Security, and Santander banks.
The Schupper siblings – Paulina, Malú, and Herman – own Corona. Amidst the recent financial turmoil, shareholders explored a potential sale to China Family Shop, a retail chain that has been expanding in Chile. However, negotiations ultimately failed to produce a deal.
in March 2024, Corona took its first major step to mitigate financial losses by ending its financial partnership with SA Commercial Credit Society – Corona card Emisor, effectively discontinuing the Corona credit card due to significant defaults and rising operating costs.
| Metric | Value |
|---|---|
| Closure Date | July 10,2025 |
| Number of Stores Closing | 50 |
| Employees affected | Approximately 2,000 |
| Liabilities | $67 Billion Chilean Pesos |
| Founded | 1955 |
Pro Tip: Consumers should be wary of final sales,as returns or exchanges may not be possible.
What factors contributed to Corona’s financial downfall?
How will the closure of Corona impact the Chilean retail market?
Evergreen Insights: The Changing Retail Landscape in Chile
Corona’s demise reflects broader challenges facing traditional brick-and-mortar retailers in Chile and globally. Increased competition from online retailers,changing consumer preferences,and economic fluctuations have all contributed to the struggles of established department store chains.The rise of e-commerce platforms has particularly impacted sales, forcing retailers to adapt and innovate to remain competitive. Chile’s retail sector is also influenced by its trade relationships,including its association with Mercosur [[3]], which allows it to pursue independent trade agreements.
Frequently Asked Questions About Corona’s Closure
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