Paco Gil, the Spanish shoe brand from Alicante, has filed for bankruptcy protection from creditors. The 31-year-old family-owned company, which has about 20 employees and designs and subcontracts the production of its shoes in Spain, is looking for ways to reorganize its business. Company officials are blaming the economic and financial crisis in Spain and the rest of Europe, a difficult market situation in its domestic Spanish market, coupled with the increased Spanish value-added tax, delays in getting VAT refunds and the discontinuation of already approved subsidies. Another problem is a major drop in bank loans, credits and insurance on customers' orders. Many Spanish shoe retailers are also struggling. However, officials of Paco Gil state that deliveries of the autumn/winter collection are secured and that business continues as usual. According to the Spanish commercial register, Paco Gil's total sales decreased by 15.8 percent to €5.1 million in 2011 as compared to the previous year. Pretax profits reached only €18,011 in 2011. Figures for 2012 could not be obtained, but they apparently showed a loss. 

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