It affects 700 employees
On Sunday, the concession Eduardo Elsztain, the real estate developer, IRSA, has ended and the Buenos Aires government demands the empty possession
After 25 years, Buenos Aires Design shopping will close next Sunday in the Recoleta district in Buenos Aires.
More than 700 families stayed behind on the street and without work. The closure concerns the 70 stores with design shops and restaurants and bars, including the Hard Rock.
The concession granted to Emprendimientos Recoleta S.A. expires, of which the majority shareholder is IRSA – the property developer of Eduardo Elsztain -, owner of the most important shopping centers in the country.
Although the law in Buenos Aires in October approved the first text of a law that would give in concession by 15 years, renewable by 5 years more, the law expected the current concession holder to extend the continuity of use with a term of at least 18 months , until the property is reassigned. But to become a law, you must go through a public hearing – not binding – and a second reading in the field, something that is only planned for January.
As it was discussed in the legislature, the authorities of IRSA and the city council tried to take positions to continue shopping until it was offered. There was no agreement, however, and the mall will close its doors. Of the 70 original buildings more than 15 were closed in recent months.
According to the BAE newspaper, from the Government of the City: "On Sunday 18 the concession expires and IRSA has to deliver the property under the conditions stipulated in the contract, free from residents and buildings. It has a grace period of three months, until February 18 to deliver it. "
Ramón Villaveirán, manager of Public and Government Affairs of IRSA, explained in the morning newspaper: "We were prepared to continue to exploit the shopping center, in fact one month ago we spoke with the Executive and we had agreed to an extension of 30 extra months but on Friday Juan Franchi, who is responsible for concessions from the city council, called us and told us he was going backwards, and they decided unilaterally that commercial activities would stop at the mall. "
The management of IRSA adds: "They will have to bear the political costs of leaving 700 families on the streets, while at the same time issuing an anti-slip decree that requires companies to inform before they are fired, it is not our decision to Close, except in a moment how critical you are, you can not leave so many people without work, "explains Villaveirán.
The workers in the gastronomic building ensure that they will not leave, that they will continue to exist until January. Ultimately, the law in the legislative power has been approved, allowing for an extension of 18 months.
Roberto Fontenla, chairman of the chamber of logging and related entrepreneurs and former tenant, said: "It is a disaster that both IRSA and the government of Buenos Aires have done, half of the stores are already closed, the management was a disaster. " Employees and tenants expect a miracle, while they organize a protest on Wednesday.
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