Premium Essay

Dafse

In: Business and Management

Submitted By maxsong1234
Words 495
Pages 2
Musinundo was a leading retailer of prerecorded music in Argentine, which have 39% market share in 1998, employed more than 2000 people and held headship position in the home-entertainment product market in December 1999. However, because of the depression of economic in Argentine, Musimundo was forced to file for bankrupt in August 2001.

The reasons for the depression of economic in Argentine: Argentine government overvaulted the Argentine peso in the past. By 2001, foreign debt caused and had AR$132 billion pubic debt through the fourth year of a recession. Besides, Exports were unable to generate enough foreign currency to service the debt. On December1, 2001, “Corralito”, a policy restring depositors’ bank withdrawals to AR $1000 per month, was published. Subsequently, the economy of Argentine began emerging from the crisis by devaluation of the exchange rate and migration of capital outside the country intensified.

In July 2003, Pegasus Capital Investment Company completely acquainted Musinundo. On year later, On the July Board of Directors Meeting, which focused on the analysis of the firm’s performance and reset store’s budget target for the remainder of the year, the Musinundo management forecasted that: year- to-date sales were 9% above budget and annual sales were expected to the double that 2003. However, Mario Quintana, Managing partner of Pegasus Capital, worried that the firm might be falling short of its potential for capturing the value carried by the rising economic tide, But he also think acquisition Musinundo was a good decision.

Musinundo was a leading retailer of prerecorded music in Argentine, which have 39% market share in 1998, employed more than 2000 people and held headship position in the home-entertainment product market in December 1999. However, because of the depression of economic in Argentine, Musimundo was forced to…...

Similar Documents

Legal Issues in Education - 942 Words | HAIFISCHNIKEZ ALLSTARS | Red Rock West