Skip to comments.Venezuela Nationalizes French-Colombian Retailer Exito
Posted on 01/17/2010 1:36:09 PM PST by Cheap_Hessian
CARACAS (Dow Jones)--President Hugo Chavez ordered Sunday the seizure of a French-owned retail chain on accusations that it raised prices after Venezuela devalued the currency by half.
"Until when are we going to allow this to happen?" Chavez asked during his Sunday television program in reference to the alleged price hike by Almacenes Exito, headquartered in Colombia and controlled by French retailer Casino Guichard-Perrachon S.A. (CO.FR).
The Venezuelan leader said that new law may need to be approved to carry out the nationalization. "I'm waiting for the new law to begin the expropriation process," he said. "There's no going back," he added.
Almacenes Exito saw some of its stores closed this week by government authorities on accusations that it was increasing prices regardless of Chavez's orders that retailers were not to adjust prices after he devalued the currency to 4.3 bolivars per dollar from the previous rate of VEF2.15.
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I am sure ‘Zero’ is watching and taking detailed notes.
This move hasn’t made Citgo gas any cheaper has it?
This whole thing should end badly for Chavez and my prediction at the beginning of the year stands, by the end of the year he's either dead or gone from the country.
I wonder about the American companies. Procter and Gamble for instance. Do they still make Pampers on Hugoland
I always think ‘nationalizes’ should be in quotes. You can call your theft what you like, but you’re still nothing but a common thief.
Hmmm Chavez will take the retailers bank accounts, Real Estate Property, fixtures, and stock of goods. But how does Chavez restock the store shelves?
Next year the headline will be as follows:
President Obama and DemocRATS ordered Sunday the seizure of all privately-owned retail chains on accusations that they raised prices after Federal Reserve devalued the dollar by half.
Obama seems to want to nationalize the auto industry, banking, and investment bank sector. Nice place for Democrat Politicians to land like Freddie Mac and Fannie Mae. All political contribution will be directed to Democrats.
Considering the actions of our current President, Americans need to STFU when it comes to Chavez Nazi actions.
Comerso, a new government-run retail chain which seeks to sell its products at "socialist" prices
Chavez is forcing retailers to keep prices below cost despite devaluation, at least until the coming Venezuelan election is over. He doesn’t want shoppers to see the real devastation to their savings and income. So he makes an example of one foreign retail firm to bully the others. No doubt store shelves are emptying fast because imported goods are not arriving at the ports. Chavez was bullying Toyota to assemble more vehicles, fat chance they will send many parts. lol
Vendors who export to Venezuela can sell as long as they have a letter of credit confirmed by an American bank.
My experience is that American manufacturers in Venezuela use raw materials such as the elastic in Pampers that is made in America
My experience with the French is that they buy from offices in France and source where stuff is cheap. Hugo lost the purchasers by closing the stores
My favorite recent Hugo stunt was when he announced that the wildly popular Venezuelan soap operas, known as culebrones, are now going to have to be based on “socialist themes.” Sounds exciting!
They used to be Venezuelan versions of “Dallas,” all sex and bling. So maybe now they’ll show socialist sex offered by citizens to the commissars to increase their coffee ration, and socialist bling where Hugo steals all the private property? Those are socialist themes allright...
Chavez knows he is an idiot. He just cut the value of their money in half, of course prices have to adjust. They are going to end up with nothing but Hugo-Marts and what they sell will be unpredictable, like everything else Hugo touches.
I hope France slaps sanctions on Venezuela.
They are going to end up with nothing but Hugo-Marts
But every kitchen will have a rice cooker...
Maybe not now but within five years if socialist
If I were the French I’d set fire to the stores and say screw Chavez. Bunch of socialist thugs they ought to be hunted like dogs and strung up for crimes against liberty and humanity.
Only the military can take him out now.
Chavez’s end will come quickly during the night. The country will celebrate. Hollywood will cry.
Exito should have went Francisco d’Anconia a long time ago. Too late now.
“Comerso, a new government-run retail chain which seeks to sell its products at “socialist” prices”
And they’ll become just like the Soviet GUM store, where the prices are so high that only High Party Officials and the Well-connected Rich can afford to shop there.
The Peons will be forced on to the Black market for every day goods.
Welcome to Socialism!
French socialism meet Venezuela socialism.
Venezuela is a big importer. Either prices go up or the shelves are empty. Which does he prefer?
He owns the military....
He owns the military....
DEAD is the preference of freedom-loving Venezuelans and sane Americans.
I’ll even send him some flowers - poison sumac.
I didn't attend the funeral, but I sent a nice letter saying I approved of it. — Mark Twain
Eventually of course it falls apart. Then you blame the United States.
Chavez hasn't come up with anything new.
What Chavez does today, Obama does tomorrow.
Problem for Chavez: the goods are imported!!! lol
Chavez will blame the US of course. International Businesses will export to Venezuela or Venezuela retailers but will demand cash terms. The retailers will then face the dilemma of selling goods at a loss or face nationalization. The government businesses can sell at a loss as economics is immaterial when the welfare of the people is at stake. Viva la Revolución ! lol
All the corporations who suffer from nationalization of their investments in Venezuela should come to invest in Honduras. Their investments are safe here.