Catman Fresh says it is considersing legal action against German retailer over alleged non-payment
Germany’s largest retailer, Edeka Group, has told Fruitnet it “strongly rejects” allegations that it breached its commercial commitments to Spanish supplier Catman Fresh.
Catman Fresh, which recently filed for bankruptcy, said it had filed a complaint with Spain’s Food Information and Control Agency, Aica, regarding Edeka’s alleged non-payment of overdue invoices, which are said to total more than €1mn.
The Alicante-based company claimed that because Edeka represented around 70 per cent of its business volume, this placed it in a “highly vulnerable operational and financial position”, and “generated severe cash flow problems, significantly accelerated its financial decline and consequently made it difficult for it to meet its payment obligations”.
Approached for comment, Edeka told Fruitnet: “We strongly reject the allegations made in the article. Catman Fresh’s bankruptcy is not related to any alleged breach of contractual obligations by the Edeka Group”.
The retailer added that it was unable to offer any further comment on the matter, due to ongoing proceedings.
In a statement published verbatim by other news outlets, Catman Fresh highlighted what it called a “significant imbalance in the business relationship, stemming from Edeka’s dominant position and its network of suppliers”.
Catman Fresh claimed it made significant investments that were contingent upon strategic agreements with its client.
And it alleged that both Edeka and Everest Fresh – the Dutch-based company acquired by Edeka in 2024 – participated in financing up to 70 per cent of projects aimed at increasing production capacity, including investments in key machinery to achieve the required packaging levels.
It also claimed the financing was subject to conditions that it considers to be onerous and which, in its view, may have served the financial interests of the financing party.
Point of no return
Catman Fresh said it tried to reach agreements for the exclusive development of new citrus varieties and their planting on specific farms. However, the company said these developments failed to materialise, leaving it with committed investments and no return.
Catman Fresh is now understood to be considering legal action and reporting the matter to the relevant authorities in Spain, Germany, and the Netherlands, as well as lodging a complaint with the European Union.
“The combination of structural dependency, conditional financing, induced investments, and unfulfilled commitments has triggered a domino effect with irreversible consequences for Catman Fresh,” it stated.
“The case opens a necessary debate within the sector regarding the limits of the relationship between distribution and production, as well as the urgent need to establish protection mechanisms for suppliers against situations of extreme imbalance.”
