Therefore, the business has entered in an insolvency agreement with the principle creditors Banco Santander, BBVA and La Kutxa.

Fontanellas invested in a new tannery in Vietnam to service its international client base with over 60% of its turnover coming from outside Spain. However, according to reports in the Spanish media the company’s turnover fell from €45 million in 2012 to €26 million in 2013. The debts have been difficult to service following the construction of the new tannery in Vietnam and the subsequent economic downturn in the Spanish and European economies.

Last year, the company made a number of its 150 staff in Igualada redundant. The company has submitted a plan to restructure the business.

ILM also understands that Vidal Bosch, which was part of the group, is now separate after the Vidal family brought back shares and ownership of the company last year.

The Fontanellas y Marti tannery in Igualada was founded in 1954 by Francesc Fontanellas and is famous for producing high-end vegetable tanned ‘Taniflex’ leathers for luxury leather goods and footwear upper. They also produce a range of chrome retanned articles on cow hide and had in recent years developed the tannery with full automation and process controls.

ILM contacted Fontanellas y Marti for comment but they did not respond.