OAKLAND, Calif.—The Venezuelan government has reportedly occupied the recently shuttered operations of The Clorox Co., eight days after the cleaning products manufacturer decided its operations there were no longer viable amid government-imposed operating restrictions.
Clorox Co. has reported that its Santa Lucía and Guacara production facilities of Corporación Clorox de Venezuela S.A. (Clorox Venezuela) have been taken over by government officials on the order of Venezuelan vice-president Jorge Arreaza with endorsement by President Maduro.
The company cited operating restrictions imposed by the Venezuelan government, considerable economic uncertainty and continual supply disruptions led to considerable operating losses.
Clorox Venezuela and its parent, Clorox Spain S.L., say they are prepared to engage in conversations with the Venezuelan government regarding prompt, adequate and effective compensation. The companies are also looking to sell the operations outright.
The Clorox Co., Clorox Spain S.L., and their respective affiliates had initiated an expedited sale process to facilitate a swift transition of the Clorox Venezuela assets to a new owner.